cifar24

Hi,

I purchased a property in a public auction from a bank. In order to register the property in my name, I went to the housing society to get the membership. The housing society claims that the previous owner (before me) of the land did not construct a house within 5 years of his purchase and they sent the owner a final notice that the society has taken over the ownership of the plot due to the non compliance of the society laws (or bye-laws whatever).

The previous owner had received loans (not a home loan) from a bank keeping the original sale deed of the property as a security prior to the final notice from the housing society. The society claims that bank did not obtain an NOC before giving loan to the previous owner and therefore their claim to the land is valid. However, the bank claims that they did not require an NOC from the society to lend a money.

The bank sold the property to me in an auction under the SARFAESI act. The property will be useless to me unless I can become a member of the society because I will have to get approval from the society to get electricity, water etc.

In short, here is the outline of events:

1992: X (assumed name) purchased a residential land in a housing society.
2000: X mortgaged the land to avail some loan (not a house loan)
2002: Housing society sent final notice to construct a house in the land otherwise his ownership of the land will be nullified due to the non-compliance of the society rules.
2008: Bank initiated the legal process to recover their loan. They put a sign board
on the land indicating the land has been seized by the bank.
2009: Land was auctioned under the SARFAESI act.

I was the highest bidder at the auction and was granted the certificate of sale from the bank after the full payment of the auction amount.

Society claims the ownership over the land even though the land is still registered in the name of X. They want me to get a copy of the NOC that bank must have gotten before granting a loan to Mr. X. Bank claims that they are not required to get an NOC for giving a mortgage loan.

Am I screwed here? I will not be able to register the land in my name unless I get an NOC from the society.

Please advice what are my options? Bank is willing to co-operate with me in any legal matters. I am willing to pay any maintenance fees past due on the property. I am located in Bhilai, Chhattisgarh.

Can a housing society claim ownership of the land without registering the land in their name?