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 the agreement, Kushwaha made a down payment of Rs 87,000 and agreed to pay the balance amount of Rs 3.13 lakh by taking a bank loan.
After receiving the registered agreement, Kushwaha applied for the loan, along with all the required documents, including the no-objection certificate (NOC) issued by the co-operative housing society. He paid the loan processing fee and even ex
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Also Read

ICICI Bank launches 'Festive Bonanza', announces offers on home, auto loans

Why is demand for private credit on the rise?

Yes Bank approves sale of Rs 48,000 cr stressed loans to JC Flowers ARC

Bandhan Bank plans to hike exposure of secured loans to 70% by 2025

Google asks loan apps to display link to partner bank, NBFC: Report

Regulation tech for financial risk planning

Lesson for India from the Silicon Valley Bank collapse

What could make the BJP lose the 2024 election or even its majority?

Conglomerates, cronyism, brandless growth

Losing political ground

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. Already a BS Premium subscriber?LOGIN NOW

Register to