Legal Question in Banking Law in India

Dear Sir Good Morning,

I Am vemula vinod kumar from visakhapatnam. Am persuing my MBA in banglore.My dad has got a property in bidding in visakhapatnam,Andhra Pradesh.As we are the highest bidder in taht we got it for 1,10,00,000-00.

We got the bidding through IDBI bank.The main problem is the main party i.e, the original owner of that property has kept the case again the bank that the property has went for low cost.We had got the bidding in july 2013.

My Question is:

1. Why should the bank give the paper advertisement without clearing all these.

2. Can we keep a reverse case against the bank.

3.Our 25% amount is blocked with the bank.

I will be very much greatfull to you,if you please provide me the information.

If there is any possibilty please give me your contact number.


Asked on 5/19/13, 10:27 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.05.2013

Dear Vinod,

1. There must be a minimum bidding amount (also called "reserve price") announced by the bank on behalf of the owner in the bid auction. The bank ought to have got this cleared with the owner prior to giving the advertisement. If it did not, it is the liability of the bank.

2. You certainly have a valid case against the bank.

3. You should plead for the land title documents to be transferred in your name by showing your willingness to pay up the auctioned amount to the owner.

Regards,

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Answered on 5/20/13, 5:17 am


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