Legal Question in Banking Law in India

We have sanctioned the Cash Credit Facility amount of Rs 600 Lakhs to Jewelery shop for working capital. One of the Property owner Shri Reddy has executed Power of Attorney in the name of His brother Shri Rajesh. Now our bank law department suggested to obtain the Personal guarantee document from the Property owner even though he is executed the POA. The same we communicated to the Property Owner, he executed the Personal guarantee document in Australia. Which document is notarized in Australia. He is not executed the document in Indian Embassy. We advised him clearly to execute the document in Indian Embassy. We request you to please clarify the following:

1. He is not executed the document in Indian Embassy, Which is legally valid.

2. We can accept the Notarized document... Please advise.


Asked on 11/21/11, 9:27 am

1 Answer from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

this document is legally not valid as the indian authorities cannot verify the document. a simple notarized document mortgaging the property situate in india may not be valid.

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Answered on 11/21/11, 11:37 pm


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