Legal Question in Banking Law in India

can housing finance co give papers to co sharer ?

I have bought a DDA flat in 1998 from DDA, i was main applicant and my mother was co-applicant as i was unmarried. then applied for a home loan from HDFC in my name and mortgaged the property. then after ward i made my mother co sharer in conveyance deed as i was unmarried. i was paying loan then got transferred out of delhi. my mother made some payment in same loan account during my transfer and now she has given letter to bank, not give papers without her consent.

my questions

1. Banker charged 14% fixed for entire period as per agreement done in 1998, when market rate of interest was hovering between 7 - 10 % in these 15 years and term fixed rate vanished from market. Can i challenge the HDFC Ltd for this fixed ROI as per fair practice code & competition act?

2. can banker return the mortgage documents to co-sharer ie my mother, when i am mortgagor? in a condition when i have updated my current address in indore, MP and my mother residing at property address in delhi.

3. can HDFC hold the documents as per request of co-sharer?

4. can Housing finance co can reversed the documents in both names with out my consent? when i wish in my name only & clear full dues myself of HDFC Ltd at indore.

5. what is the role of a banker in this family matter.

Pls give your suggestion on this....

Asked on 9/10/13, 5:03 am

2 Answers from Attorneys

KarVai Legal Solutions Rajiv Gupta 9811284735 Ch.No: 359, Western Wing, Tis Hazari, Delhi

one has to go through the documents to guide you whether the complaint lies to bank ombudsman or to the consumer forum. you may see a lawyer.

Thanks and Regards

Adv. Rajiv

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Answered on 9/10/13, 8:48 am

Fca Prashant Chavan Expert Edge LLP


Dear Sir / Madam,

1. In the 90's HDFC Limited took full advantage of its position of being the sole home loan Company, as other housing finance companies like Dewan Housing were dormant and LIC Housing Finance was just launching its home loan products. YES. You can challenge the HDFC policy of fixed ROI as per fair practice code & competition act.

2. The bank is supposed to retain all original property documents till the entire loan amount is cleared, settled and fully repaid by the borrower(s). The bank cannot legally release the original documents to your mother without your explicit consent and approval.

3. NO. The day the loan is cleared and fully repaid, the bank is legally bound to return all the original property papers back to the borrower(s).

4. NO. The bank of its own discretion cannot tamper or interchange the name of the borrowers, without their explicit consent and approval in writing to the bank.

5. The bank has no business to interfere in any family matter.


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Answered on 9/10/13, 8:58 am

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