Legal Question in Banking Law in India

I had taken a home loan but the bank has not registered the title deeds nor does it have a power of attorney to the same. The bank has blundered in this process. I have been paying the EMI`s. The seller now has staked claim in the said property citing that there is no agreement to this effect which is true. May I know whether a bank can auction the property or stake a claim if it has no title deeds etc? I had taken a loan from a financial institute. The property was worth 40 lacs at that time. The Bank financed 30 lacs. I had paid 10lacs by cash. The Bank went and gave the cheque of 30 lacs to the seller without first registering the property or executing a sale deed. On receiving the cheque, the seller decided against selling the property and tore all the documents which the bank had given me to sign and also to get signed from them. The staus as on today is that i have been paying EMI`s without the property being registered in my name. The bank is aware that there is no registeration done.I have now stopped paying EMI`s to the bank and the bank has sent me a notice to take possession of the said house as the account has become NPA. I wrote to the bank stating that i am willing to pay off the loan but they should hand the property to me and also give me the tile deeds. The bank has since then not responded. What should I do inorder to have a right to this property and / or deal with the bank? if the bank does not have the title deeds, can I claim compensation w.r.t neglect in duty of the bank and my loss of property?

Asked on 10/03/10, 7:19 am

RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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as per law, the debtor is given first preference in relation to purchase of property. your demand is legitimate.

Answered on 10/04/10, 11:11 am

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