State Bank of India Sold Property by Fraud under Sarfaesi Act, Hyderabad

State Bank of India came up with an auction notice for selling a mortgaged property in leading news papers around 1st of January, 2013. I decided to buy the property and have bidden in the open auction conducted by them on Feb 05, 2013 and I was declared the successful bidder for an amount consideration of Rs 25,00,000. Upon payment of the full amount within 15 days of the auction, I was handed over the sale certificate for the property.

Consequently for getting the property registered at the Sub Registrar Office, I have inquired the Registrar around 24th Feb,2013 about the stamp duty charges for the property sold by bank. The Registrar replied that the property sold by bank is in the prohibited list of properties for registration and the land was noted as 'Government Land' in their records. A point to note is EC reflects the same name as that of borrower of this property.

Subsequently, I have written a letter to the chief manager addressing the same issue. I have taken an acknowledgement copy of the letter received.However, Its been a month and there is no response from the bank. Upon visits to the property sold and conversations with the locals there I was informed that the property is a litigant land and the ex- secretary has some photo copy of a Notarized GPA of the property('A' gave sale cum notarized GPA to 'B' and then 'A' sells to 'C', 'C' mortgages land to SBI). I couldn't get a copy of the GPA. He's refusing to give it.

I have made multiple visits to the bank but they are not responding positively. They say they handed the case to a lawyer and the lawyer is of the opinion that a case has to be filed in high court regarding the 'Government Land' title and the bank wants me to wait until a judgement is given by court. If judgement is not in favor they would then think of returning the money.

I'm NO LONGER interested in the property because of the disputes and the litigation. I have requested the bank to return my money but they are postponing things , not giving time to discuss, not given any response to the letter written.

What should i do to get my money back at the earliest? Should i visit bank ombudsman? Is this case eligible for bank ombudsman hearing?Should i file a cheating case against the bank and its official for trying to sell a fraudulent property? Please advise.


Staff member
Here is your solution:

Quote the same judgement with RBI Ombudsman of your area.

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