Banking
Bank avoiding to release security papers
Swaraj Urban Bank acknowledge in writing of receiving full loan amount but avoiding to hand over my original papers of my home which I deposited with bank for loan. Bank officials are asking for some cash amount to release security papers. Kindly advise me how I can get my security papers released from the bank.
By  Ridhima  |  09 Mar 2016  |  Upvotes: 0  | 

2 Answer(s)

Vishal Kumar Thakur
Advocate

Just issue a Registered notice to Bank first, informing the date of closure of the account and request for returning of the documents offered as security for the borrowed amounts. In that notice inform Manager that you will be constrained to report the matter to Banking Ombudsmnan and RBI if documents are not made available within a week. (Before that please check whether for cancellation of mortgage, any amounts are payable direct to sub registrar as official fees)

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Tanushree Sharma
Advocate
Please ensure that you do not have any other direct or indirect liability with the Bank. When you do not have any liability whatsoever with the bank, it is their bounden duty to release all the security documents including the title deeds deposited with them for creating a mortgage. Write with full details to the head office of the bank, preferably by Registered Post A/D (not by courier) and preserve the acknowledgement. Give a reminder likewise after one week from receipt of acknowledgement. Still no response from Bank or resolving the issue i.e. release of title deeds to you, file a complaint against the bank before the Banking Ombudsman who shall issue notice to bank and resolve the issue.
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