Bombay Mercantile Co-op bank kaisarbag
Sarfaesi torture

Dear Sir,

I want to draw your attention to the loot being made by banks in connivance with antisocial elements in absence of preventive measures.

Banks give loan to parties keeping the Title deed as Equitable Mortgage. Equitable mortgage is not registered with the sub registrar as it is not mandatory in many states. Encumbrance will not be shown if a certificate is sought from the SRO. Borrower sell the property to others with the help of FIR claming that his original title deeds have been lost. Non-encumbrance issued certificate by SRO doesn’t mention any loan on the said property. Purchaser (second) can further sell the property and the chain goes on. Bank does not bother till the amount has become very heavy and property value has appreciated considerably.

When bank can’t find its dues paid by the borrower it uses its power under sec 13 (4) to secure the property. The last purchaser is in fix as he was not aware of the loan till the bank started the possession. Problem is graver when the borrower is absconding.

Who is to blame? I am victim. I have served the Armed forces of the country for 23 years to see the day when the house purchased by me legally will be forcibly sold by the bank in connivance to others.

I can simply request the Law makers who have not been able to protect the common man right. We can not expect a society free from criminal but we can do our part. Why the Equitable Mortage is not compulsory registered in India. What is validity of unregistered mortgage? How the person can come to know that the property is free from any encumbrance in case of equitable mortgage. What is the relief available to the last purchaser who is innocent?

Almost all the SLBC (state level Bankers committees, the IBA and many banks have approached the Government to make EM (equitable mortgage). compulsorily remittable.

I append the UP SLBC meeting dated 4 Mar comment on EM.

1. Action Point No. 6: Registration of Equitable Mortgage (Noting of Lien)

It was informed by DIF that a proposal was handed over to the Tax & Registration Deptt., Govt. of U.P. after the meeting held on 04.03.2010 under the Chairmanship of Chief Secretary, Govt. of U.P. and the matter is under their active consideration.

Shri Shailendra Kumar, Chief Manager, SLBC was of the view that no decision is coming for the last 2 years despite regular follow up and since equitable mortgage already attracts stamp duty, only a token fee should be charged in this regard.”

High court discourages Writ Petition under Article 226 in case of SARFASEI and directs the individual to approach the tribunal only. DRT only sees that the bank follows the correct procedure it does not appreciate the view point of the aggrieved (in many case not the borrower). Where is the law to protect the innocent? I appreciate the tough law of SARFAESI in case of borrower but what about in case of others. Please help me before I am ruined and my family consisting of my wife and only daughter is on road.

Company: Bombay Mercantile Co-op bank kaisarbag
Country: India
State: Uttar Pradesh

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