Business Standard

Banks can't withhold loan on flimsy ground

The District Commission concluded that raising a doubt about the validity of the NOC at such a belated stage could not be permitted


Jehangir B Gai
Jayprakash Kushwaha was interested in purchasing a 414 square foot flat in Nalla Sopara, which was owned by Rahul Lokhande. The total agreed consideration for the flat was Rs 4 lakh.

Prior to finalising the deal, Kushwaha approached Bank of Baroda for a loan of Rs 3.13 lakh. The bank informed him that he would have to mortgage the flat in its favour and apply for the loan after executing a registered agreement. The bank issued a pre-sanction letter on February 8, 2007. The agreement for the purchase of the flat was registered on March 12, 2007.

According to
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 19 2023 | 8:51 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to