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Indian Bank Sold Property by Fraud Through Auction under Sarfaesi Act, Bengaluru

27-08-2012, 07:43 PM (This post was last modified: 28-08-2012 02:36 PM by Expert.)
Post: #1
Indian Bank Sold Property by Fraud Through Auction under Sarfaesi Act, Bengaluru
Indian bank came up with an Auction notice in leading newspaper on 29th of October 2010. so I decided to buy the property. After making the full payment to the bank they issued me SALE CERTIFICATE and asked me to complete the registration process. I asked them about the other documents for which they informed me that I just need sale certificate to complete the registration. I went through the registration procedure successfully. I got the bid from Indian Bank for 6,87,000.00 and I paid approximately 54,000.00 towards registration.
After 6 months of purchase at the time of Income tax assessment my C.A. asked me about paying property tax and he asked me about conversion of KHATA on my name. I had no idea about all these things. Then he explained me about the KHATA transfer process and for this I need all the documents and also tax receipt of earlier payments and KHATA copy of earlier holder. I approached bank again in and asked them to provide me all the original documents of the land so that I can complete the formalities. Even after visiting the branch several times for the original documents, bank was not in a position to provide me any of those.
I got suspicious and went through my own investigation. I went to BBMP office and took the Encumbrance Certificate (EC) of the plot which bank sold to me. I was shocked and horrified when I looked at the EC. In the Newspaper notice bank mentioned the name of the property owner and bank had told me the person pledged in the bank in 2006. Bank sold me the property in 2010 but there were two more sale transactions in between 2007 and 2009 for the same property. How is that possible when the property is pledged in the bank?
I visited the branch again and asked them in writing to provide me all the documents. To my surprise bank gave me Xerox copy sale deed which was sold to other party in 2007 by the person who pledged the property in bank. This clearly proves that bank are aware of this fraud, still they came up with public auction and sold the property.
My original amount along with expenses and interest comes to nearly 11 lakhs.
Present market value of the property is approximately between 17-20 Lakhs.
I request people to advise me what I should do further. Can I claim my amount from bank as on market value and also compensation for mental agony? If yes, how much can I claim?
What is the entire procedure? Should I hire advocate? Can anyone help me out here or fight my case?
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27-08-2012, 11:09 PM
Post: #2
RE: Indian Bank cheated through Auction under Sarfaesi Act
Don't hire advocate at this time unless everything is clear to you. In my city court it is littered with such property cases.

There are two things:
  • The original owner pledged his property with bank first and then sold it two times later. In that case you only will be the legal owner. You should also meet the other people who have been defrauded and intimate them about it.
  • The original owner pledged his property which was not his legally(may be because he had already sold it to someone else). In this case it is bank's fault and banks don't do such mistakes unless someone is taking bribe in the bank. Even after taking bribe they will not do such a mistake as this can cost their job.

Don't think of advocate or court. It'd take 10 years to get justice and in the mean time you'd have paid the advocate may be 2-3 lacs.

It is not the amount that matters. It is more of my self-respect as an educated consumer!Shy
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 Thanks given by: nansurabhi , MKSharma64
28-08-2012, 12:22 PM (This post was last modified: 28-08-2012 01:06 PM by Expert.)
Post: #3
RE: Indian Bank cheated through Auction under Sarfaesi Act
Thanks bro for replying and advising me. i wanted to know one more thing, according to Sarfaesi act section 8(6)(f) it is the duty of the bank or financial institution to check thoroughly if there are any litigation or objections against the property, its their duty to inform the buyer about it so that it will help the buyer in analyzing whether to buy or not. Any they have made it mandatory to to show the encumbrance of the property. So it clearly proves bank had done an illegal auction process or the process not according to RBI guidelines. According to EC owner of the property is someone else then how can bank auction the property? Without going to consumer court or civil court do i have any other alternative?
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28-08-2012, 01:12 PM
Post: #4
RE: Indian Bank cheated through Auction under Sarfaesi Act
Whether or not it falls in Sarfaesi, defrauding buyers in any way not allowed. Selling you by deceit should be illegal. First go and meet the advocate on panel of the bank who has approved mortgage of this property and ask the reason of it. Get all the mortgage papers(use RTI if necessary) and then visit him. It is unlikely that they have done mistake.

I also suggest you file a complaint with Bank Manager, get a signed copy of complaint. Also complaint to senior authorities and then visit then Banking Ombudsman appointed by RBI in your area.

After this you can meet a competent lawyer. It wouldn't be consumer court case since you're on a consumer in this process. Let us see what comes out before you think of going to court.

It is not the amount that matters. It is more of my self-respect as an educated consumer!Shy
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28-08-2012, 02:13 PM
Post: #5
RE: Indian Bank cheated through Auction under Sarfaesi Act
Thanks again bro, as mentioned i have completed all the steps. i.e. requesting the bank for all the details and wrote a written letter to branch manager, later wrote to nodal officer . Now i think next step would be to proceed with ombudsman. We have rbi ombudsman department in bangalore so that will be my next step now. thanks for the prompt reply bro. will update u the proceedings.
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28-08-2012, 02:35 PM
Post: #6
RE: Indian Bank cheated through Auction under Sarfaesi Act
If you think it is clear case of cheating then you can file FIR also in police station. Go and threaten bank officials about the FIR. If you file FIR then they will be forced to internal investigation and disciplinary action against those who have willfully sold you the property.

Also try to inform the print media about this fraud. This is indeed full fledged fraud.

It is not the amount that matters. It is more of my self-respect as an educated consumer!Shy
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 Thanks given by: madhu_tp
07-10-2012, 05:34 PM
Post: #7
RE: Indian Bank cheated through Auction under Sarfaesi Act
(28-08-2012 02:35 PM)Expert Wrote:  If you think it is clear case of cheating then you can file FIR also in police station. Go and threaten bank officials about the FIR. If you file FIR then they will be forced to internal investigation and disciplinary action against those who have willfully sold you the property.

Also try to inform the print media about this fraud. This is indeed full fledged fraud.

Hi Bro,

I lodged complaint in banking ombudsman and they called me for hearing next week. i will let u know the proceedings and will require your valuable advise on this.
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02-11-2012, 12:32 PM
Post: #8
RE: Indian Bank cheated through Auction under Sarfaesi Act
Hi,
I am a journalist and was appalled after reading your plight.
Is there any way I can get in touch with you and highlight this issue for our readers. It will all be confidential off course.
But such a grave fraud by banks is just not excusable.
Pls let me know if we could speak.
Regards
Sunainaa
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25-01-2013, 12:29 PM
Post: #9
RE: Indian Bank Sold Property by Fraud Through Auction under Sarfaesi Act, Bengaluru
Hi,

Just wantedto ask u whether ur problem is resolved. Can u please tell me, if yes, because we are also facing same kind of problem.

Thanks
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26-01-2013, 03:05 AM (This post was last modified: 26-01-2013 03:07 AM by nansurabhi.)
Post: #10
RE: Indian Bank Sold Property by Fraud Through Auction under Sarfaesi Act, Bengaluru
(25-01-2013 12:29 PM)rimple75 Wrote:  Hi,

Just wantedto ask u whether ur problem is resolved. Can u please tell me, if yes, because we are also facing same kind of problem.

Thanks

Yes my problem is solved. I lodged a complaint in Banking Ombudsman. after 1 month they called me for hearing and instructed bank to refund my amount along with registration fee and official legal expenses. without spending any amount i got my money back from bank in 3 months. Thanks to Banking Ombudsman, Bangalore. Let me know ur problem. pm me i will try and help you out. got little experience fighting this case. Hope it will help you.
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