TABLE OF CONTENT

Sr.No. Particular Page No.

INTRODUCTION 1

1. TITLE INVESTIGATION OF PROPERTY 1-2

2. PERIOD OF INDEX INSPECTION 2-3

3. CHAIN OF TITLE-CERTIFICATE BY THE ADVOCATE 3

4. OBTAINING OF NON-ENCUMBRANCE CERTIFICATE 3-5

5. CERTIFIED COPY OF TITLE DEED FROM SUB- REGISTRAR 5

6. VETTING OF LEGAL OPINION CUM INDEX INSPECTION REPORT 5

AND TITLE VERIFICATION CERTIFICATE

7. VETTING OF SECURITY DOCUMENTS 5-6

8. PRE SANCTION AND POST SANCTION INSPECTION 6

9. REGISTRATION OF EQUITABLE MORTGAGE WHEREVER 6

POSSIBLE

10. PREVENTION OF IMPERSONATION BY MORTGAGOR 6-7

11. LEASEHOLD PROPERTIES 7

12. CASES WHERE PROPERTY IS SOLD FLOOR-WISE 7-8

13. SAFEGUARDS TO BE FOLLOWED FOR MORTGAGE OF TAX 7-9

SUPERINTENDENT REGISTER NUMBER 1 (TS-1) PROPERTY
UNDER MUNICIPAL CORPORATION

14. LOST TITLE DEEDS 9-10

15. PAYMENT OF FEE 10

16. REGISTRATION WITH CERSAI AND ROC 10-11

17. MARKET INTELLIGENCE 11

18. PRECAUTIONS TO BE TAKEN BEFORE ACCEPTING TITLE DEEDS 11-13
AS SECURITY

19. PRECAUTIONS TO BE TAKEN AT THE TIME OF OBTAINING 13-14

REVIVAL LETTER AND BALANCE CONFIRMATION LETTER

20. KNOW YOUR CUSTOMER (KYC) NORMS 14

21. ACTION AGAINST ADVOCATES 14

22. ACTION AGAINST VALUERS 14

23. VALUATION OF SECURITIES 14

24. ANNEXURE-I 15-29

25. ANNEXURE-II 30-31

26. ANNEXURE-III 32

27. ANNEXURE-IV 33

28. ANNEXURE-V 34

29. ANNEXURE-VI 35

30. ANNEXURE-VII 36-37

31. ANNEXURE-VIII 38-39

 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

Introduction
In order to secure the loan, Bank obtains movable and immovable property as security
so that in case of default by the borrower, such security may be enforced to recover the
dues. Thus, it is imperative that title to such securities are free from encumbrances and
borrower holds clear title to create Bank’s charge on it. To ascertain the title of the
borrower and any encumbrance on the property, Title investigation of immovable
property is undertaken through Bank’s empanelled Advocate.

Before accepting an immovable property as security, proper enquiry is required to be

conducted as to the Mortgagor‘s title to the property and must obtain title search cum
Index Inspection report on the same so as to ensure that the property is in the name of
the proposed mortgager and to confirm whether the property in question is already
encumbered or not.

Bank has been following guidelines on Index inspection and title verification of
immovable properties as contained in Master Circular No. 8 dated 26.08.2013 of HO Law
& Recovery Department and subsequent amendments issued vide Law Circulatory
Letter No. 96 dated 10.07.2019, HO L & R Department Circulatory Letter no. 100 dated
31.01.2020, HO L & R Department Circulatory Letter No. 128 dated 09.06.2021 and H.O.
Circular No. 848 dated 19.08.2021.

In the present Policy, these directions are being put in place in a composite form after
making necessary modifications in the light of present scenario, to facilitate easy
compliance & to prevent incidences of fraud & prevent mortgage of properties with
imperfect title.

The Master Circular No. 8 dated 26.08.2013, Law Circulatory Letter No. 96 dated
10.07.2019, HO L & R Department Circulatory Letter no. 100 dated 31.01.2020, HO L &
R Department Circulatory Letter No. 128 dated 09.06.2021, H.O. Circular No. 848 dated
19.08.2021, HO: L&R Circular No. 1348/2021-22 dated 21.02.2022 and HO: Inspection
Circulatory letter no. 155/05/2005-06 dated 27.04.2005 are being superseded.

1. TITLE INVESTIGATION OF IMMOVABLE PROPERTY:

Title investigation comprises of the following:

a. Legal Opinion cum Index inspection of the property and scrutiny of title documents
b. Obtaining of Non-encumbrance Certificate

Page 1 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

a. Legal Opinion cum Index inspection of the property and scrutiny of title
documents: In all loan exposures, Index inspection of the property to be mortgaged and
scrutiny of title documents shall be carried out by the empanelled Advocate by tracing
and searching of title for past years from Registrar/ Sub-registrar office/Development
Authority and/or with revenue authorities before submitting the title clearance report to
the Bank. Such title clearance establishes right of the mortgagor to transfer the title to
safeguard the interest of the Bank in recovery proceedings.

b. Obtaining of Non-Encumbrance Certificate: Non-Encumbrance Certificate facilitates

in discovering any prior/hidden charges existing against the property to be mortgaged.

Index Inspection Report, Non-Encumbrance Certificate and Legal Opinion on title to

properties offered as security should be first obtained at the time of loan proposal is received
and secondly just before disbursement. This is to avoid any possible charge on property that
may be created in the intervening period. In case amount of credit facility is Rs. 5 Crore
or more, Index Inspection, Non-Encumbrance Certificate and Legal Opinion must be
obtained from Bank’s two independent panel Advocates/retainer counsels.

Note: Panel Advocate should submit a Copy of printout of record of the property from
the website of respective State Government duly certified by the concerned panel
Advocate and the same is to be held on record, where revenue records are available
online and status with regard to mortgage or mutation in Bank’s favor may be
checked from website of the respective state, wherever available.

2. PERIOD OF INDEX INSPECTION:

The period of Index Inspection is as follows:

a) For Loan proposal upto Rs. 2 Crore: Index inspection for title search to be
carried out for a period preceding 13 years only*.

b) For Loan proposals above Rs. 2 Crore: Index inspection for title search to be
carried out for a period preceding 30 years. However, after recording reason, this
period may be reduced by the Zonal Manager for Loan Proposals upto Rs. 5
Crore, for example in case of non-availability of the revenue records with revenue
authorities/government authorities etc in the event of force majeure. Further, to
reach upon the conclusion for reducing the time period for which
search/investigation of the title has to be carried out, it must be supported by

Page 2 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

opinion of two panel advocates/retainer counsels. Further, these two

advocates/retainer counsels must be different from the advocates who have
conducted Index Inspection*.

*Note: In case search is unable to establish clear title or in case of any clog or
suspicion on title of the property, search should be made for further long
period depending on the need for clearance of such clog or suspicion on the
Title of the property.

(c)Government allotted property: In case the title of the property to be mortgaged

is conferred first time by Government agencies (for example DDA, HSVP etc) the
title investigation is to be carried out for 13/30 years (as the case may be) from the
date of receipt of loan proposal or the period since title has been conferred first
time, whichever period as above is lesser.

(d) Mortgage of Property in building projects: In all such cases where the title of
the property to be mortgaged is conferred first time by private builders /developers
in a RERA Approved Project, the title investigation is to be carried out for 13/30
years as the case may be.

3. CHAIN OF TITLE-CERTIFICATE BY THE ADVOCATE:

Examination of chain of title is one of the most crucial aspects in title investigation. It
has to be ensured that entire chain of title deeds is obtained from the borrower and the
advocate should invariably state that he has inspected all relevant records and
documents concerning the property. The advocate in his opinion must state specifically
which documents of the chain are to be obtained in original.

The Advocate should also attach a declaration as per Annexure-V, which is a

mandatory requirement.

Further, Branch has to obtain original title deeds/documents of title completing chain of
title. In case, during investigation of title and search report, it comes to the notice of
panel advocate that some link deed is not original or the link title deed is missing, the
panel advocate must highlight this aspect in his report as per Annexure-1. Further,
Branch to be guided as per extant guidelines of the Bank in this regard.

4. OBTAINING OF NON-ENCUMBRANCE CERTIFICATE:

Non-encumbrance Certificate facilitates in discovering any prior/ hidden charges
existing against the property to be mortgaged.

Page 3 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

Further, the Period to be covered in NEC is as follows:

(a) For Loan proposal upto Rs. 2 Crore: Non-encumbrance Certificate of the secured
property be obtained for a period preceding 13 years only.

(b) For Loan proposals above Rs. 2 Crore: Non-encumbrance Certificate of the
secured property be obtained for a period preceding 30 years. However, in
exceptional circumstances which are beyond the control of prospective
mortgager/Bank, this period may be reduced by the Zonal Manager for Loan
Proposals upto Rs. 5 Crore after recording reason, for example in case of non-
availability of the revenue records with revenue authorities/government authorities
etc in the event of force majeure.

Further, to reach upon the conclusion for reducing the time period for which
search/investigation of the title has to be carried out, it must be supported by opinion of
two panel advocates/retainer counsels. Further, these two advocates/retainer counsels
must be different from the advocates who have submitted Non-Encumbrance Certificate.

Note-1: For obtaining NEC, advocate should be engaged by the Branch and not by the
Mortgagor. Branch Manager should personally give the title deeds (photocopies only) to
the advocate against receipt. In no case original title deeds are to be parted with.
Originalis to shown to the advocates before issuing the certificate by them. The
proposed mortgagor need not even know as to which advocate the Branch has entrusted
the work.

Note-2: Apart from NEC which is to be compulsorily submitted by the Advocate. NEC is
to be taken by the Branch Manager through online mode, if available. In case NEC is not
available online, the same is to mentioned by the Advocate in his report at the time of
submission of NEC along with reason. Further, an affidavit cum undertaking is to be
obtained from the Mortgagor that the property is still under his/her ownership, no
subsequent charge on the property is created and is neither given on rent/lease.

(c) Government allotted property: In case the title of the property to be mortgaged is
conferred first time by Government agencies (for example DDA, HSVP etc) non-
encumbrance certificate is to be obtained for 13 years/30 years as the case may be
from the date of receipt of loan proposal or the period since title has been conferred
first time, whichever period as above is lesser.

Page 4 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

(d) Mortgage of Property in building projects: In all such cases where the title of the
property to be mortgaged is conferred first time by private builders /developers in a
RERA Approved Project, non-encumbrance certificate is to be obtained for 13
years/30 years as the case may be.

5. CERTIFIED COPY OF TITLE DEED FROM SUB-REGISTRAR:

Whenever title deeds are offered as security for availing loan facility and for creating
Equitable Mortgage, the Bank through empaneled Advocate shall immediately apply
to the concerned sub-registrar for a certified copy of the title deed. Receipt of such a
certified copy from the Registrar's office and its cross tallying with the original title
deeds in Bank's hand, is a proof to genuineness of the documents of title. Advocate to
compare the certified copy of the title deed with the original title deed and provide
certificate certifying that there is no discrepancy in the documents. The format of
certificate is annexed in Annexure-I.

6. VETTING OF LEGAL OPINION CUM INDEX INSPECTION REPORT AND TITLE

VERIFICATION CERTIFICATE:
Vetting of Legal Opinion cum Index Inspection Report and Title verification Certificate
shall be submitted by the Bank’s empanelled Advocate/Law Officer for loan amount
more than Rs. 50 Lakhs & upto Rs. 5 Crore. Further, the vetting shall be done by
Bank’s empanelled advocate other than the Advocate who has submitted such report
& certificate. After the vetting, a certificate as per Annexure-III shall be submitted by
the Advocate/Law Officer.
Vetting will be based on the available Legal Opinion cum Index Inspection Report &
Title verification Certificate and chain of documents. Vetting of legal opinion is to be
carried out before disbursement of loan.

Branch Manager shall be the competent authority to appoint any of the bank’s
empanelled Advocate doing the vetting of the Legal Opinion cum Index Inspection
Report and Title verification. Further, it must be ensured that the Advocate who will
vet the Legal Opinion cum Index Inspection Report must be different from the
Advocate who has submitted the Legal Opinion cum Index Inspection Report. In
furtherance to aforesaid, the appointment of Advocate for the aforesaid task must be
done Judiciously by the Branch Manager.

7. VETTING OF SECURITY DOCUMENTS:

Vetting of Security Documents is to be done at Branch level by Bank’s panel
advocate/retainer counsel before disbursement of loan/limit.In this regard, Branch

Page 5 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

Manager shall be the competent authority to appoint any of the bank’s empanelled
Advocate/retainer counsel for conducting the vetting of Security Documents and
Certificate in this regard shall be obtained from the Advocate as per Annexure-
VIII. Further, cases where the security is in the form of property(ies), vetting is to be
done for a loan/limit of Rs. 10.00 Lakhs and above and where there is no security, the
vetting is to be done for a loan/limit of Rs. 25.00 Lakhs and above.
However, pre-disbursement vetting is exempted in Personal Loans, Vehicle
Loans, Gold Loans and Loans with liquid security.

8. PRE SANCTION AND POST SANCTION INSPECTION:

The concerned Branch Manager should carry out proper pre sanction inspection to
identify the property mortgaged and also conduct post disbursement inspections of
properties at periodical intervals as per extant guidelines which are contained in ID
Circular No. 1563 dated 25.03.2024 and updated in the Loan Policy from time to time.

9. REGISTRATION OF EQUITABLE MORTGAGE WHEREVER POSSIBLE:

Creation of Equitable Mortgage does not require registration, is the general law, but
there are few states like Tamil Nadu, Madhya Pradesh, Maharashtra etc., where
amendments have been made in the law and transactions of Equitable Mortgage are
registered. Registration of Bank's charge, by way of Equitable Mortgage, in such
states should be insisted upon by the Bank.
In States where Registration of equitable mortgage is not compulsory and equitable
mortgage is created by Bank, the concerned Sub-Registrar be informed of the fact by
way of a letter under registered cover, with a request that this letter be kept in the
relevant file along with records of the property mortgaged. This will help in prevention
of any subsequent mortgage.

10. PREVENTION OF IMPERSONATION BY MORTGAGOR:

Branch(es) should exercise utmost caution while accepting sale deeds/title deeds and
other documents of properties as collateral securities. Following measures are
suggested to safeguard Bank’s interest:

a. Branch may insist on opening of Bank accounts (with photograph, introduction,

etc.) by owners of property who offer the same as collateral security against loans
given to the third parties. Alternatively, proof of details of their Bank accounts with
other Banks/ Branch (es) of our Bank, be kept on record.
b. Branch should send a letter through registered post to the owners of the property

Page 6 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

to confirm their residential address and their willingness to offer the security as
collateral. Wherever possible, Branch Incharge or any other staff incumbent should
visit the residence of the proposed mortgagor to confirm these facts.
c. However, in exceptional cases, if the person offering the mortgage is not an
account holder of the Bank and is not willing to open the account with us, the
Branch may not insist upon opening of account but shall obtain documents of his
identity proof, residential proof etc. along with letter of request showing the
intention to create mortgage by deposit of title deeds. Confirmation of address
through Registered Letter as advised hereinabove be done invariably, and
additionally physical verification be also done by the Branch Manager/ Loan
Officer.

11. LEASEHOLD PROPERTIES:

In case of Lease Hold Properties the following precautions need to be taken:

a. Permission should be obtained from Lessor for mortgage of property.

b. Total Lease period and unexpired lease period must be taken note of to ensure
that period of mortgage does not exceed the residual period of lease agreement.

c. There must not be any onerous clause in the lease deed which may prejudice
the interest/cause of the Bank.

12. CASES WHERE THE PROPERTY IS SOLD FLOOR-WISE:

While accepting the chain of documents of property sold floor wise, the original
documents to the land is normally retained by the owner or any one of the occupants.
In this situation, such original documents should be seen and appropriate remarks
about ownership of purchaser of property floorwise be made, so that the public at
large is put to notice that ownership of so and so floor constructed on the said land
lies with (Name of the owner), to rule out any subsequent encumbrance.

Secondly, the factum of holding of documents of title to property lying with the
owner or any other occupant should be recorded in the Registered Sale Deed of
the property going to be mortgaged with the Bank.

13. SAFEGUARDS TO BE FOLLOWED FOR MORTGAGE OF TAX

SUPERINTENDENT REGISTER NUMBER 1 (TS-1) PROPERTY UNDER
MUNICIPAL CORPORATION:

Page 7 of 39
Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

TS-1 properties where there is no record in Revenue Department and record is being
maintained & charge is entered into TS-1 Register, loan against mortgage of such
type of properties is to be advanced only after careful scrutiny and subject to
satisfaction of the Branch Manager and considering the background, past record,
credibility etc of the prospective borrower/ mortgagor, a decision to be taken by an
official not below the rank of Zonal Manager to accept the mortgage on the basis of
TS 1 Property on case to case. Further, TS1 Property under Municipal Corporation
without revenue records may be accepted only if the property is allotted by
Government and chain of title is complete since allotment and subject to the following
safeguards in addition to the existing Bank norms:
I. If the property is allotted by the Government and chain of title is complete
since allotment, then subject to obtaining all original title deeds along with their
certified copies from allotment to present title including the deeds executed in
between are obtained. Genuineness Certificate be also obtained.
II. The property should be clearly demarcated and identifiable and same is to be
ensured by the Branch Official(s).
III. Latest property Tax Receipt clearly depicting the address and ownership of
the property owner is obtained.
IV. Latest Water and Electricity Bills in the name of property owner are obtained.
V. CERSAI search prior to the sanction of loan and registration of charge in
CERSAI is done.
VI. Affidavit from the present Owner (Borrower/Mortgagor) confirming his
ownership of the TS-1 property to be obtained.
VII. Charge is to be entered into TS-1 Register (Wherever applicable)
VIII. Property should be located within limits of Municipal Corporation.
IX. Inspection of property to be made by Bank’s official and discreet enquiry to be
made about the physical possession of the property by its title holder. The
Visit report is to be submitted as per Annexure-IV.
X. Before creation of Mortgage, a clear 10 days time to be given by the Bank for
inviting objections from public by way of notification in 2 (Two) National
Newspapers. Further, the expense for publication shall be borne by the
proposed Mortgagor.
XI. It should be ensured that title deed deposited by the borrower is original and
valid equitable mortgage is created. Further, it must be ensured that proper
pre sanction visit is carried out and KYC of the borrower is verified.

Page 8 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

XII. Map must be duly approved by the Municipal Corporation and geo-tagging of
the proposed property be obtained from the valuer for identification of the
property.
XIII. Property should have unique identification number, House number or property
number etc. allotted by Municipal Corporation.
XIV. Vacant Plot is not to be mortgaged.
XV. NEC be obtained as per clause 4 above.
XVI. Advocate shall certify SARFAESI compatibility and that the property is valid
and enforceable and equitable mortgage can be created.
XVII. Index Inspection for title search to be carried out for a period preceding 30
year.
XVIII. Certificate to be obtained from the Municipal Counselor of the concerned
Municipal Corporation stating that he is the owner and having possession of
the property with property no.____ registered on the basis of sale deed no.___
dated ____ in the revenue record(Wherever available).
XIX. Permission for granting the acceptance of TS-1 property record to be created
at ZO Level and review of the same shall be carried out yearly. However,
Legal Opinion must invariably be taken in every account.

The aforesaid safeguards are only indicative, not exhaustive. Legal Opinion from
the panel advocate/retainer counsel to be obtained invariably.

14. LOST TITLE DEEDS:

If prospective mortgagor informs that the original/link deed is misplaced, such
property should not be accepted as security because of misuse of original title deeds
cannot be ruled out. If it is so, this may hamper our right in the security, as a
mortgagee. However, in a genuine case and subject to the satisfaction of the branch
manager and considering the background, past record, credibility etc of the
prospective borrower/mortgagor, a decision may be taken, on case to case basis, not
below the rank of Zonal Manager to accept the mortgage on the basis of certified
copies of the link/chain deedfor which legal opinion must be obtained from the panel
advocate/retainer counsel.In such case the prospective borrower should be advised
as follows:

a. To submit copy of FIR, if the same was lodged at the relevant time.
b. Copy of Non-Traceable report/certificate be obtained(Wherever applicable)

Page 9 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

c. To submit copy of paper publication, if the same was given by at the relevant time.
d. Affidavit explaining the fact of as to how he/she lost the original title deed with an
undertaking that in future if he/she gets the original copies of the title deeds, he/she
will submit the same to the Bank
e. The prospective mortgagor should also confirm in writing that he/she has not used
the original title deeds anywhere and in any manner whatsoever, including but not
limited to, depositing with the creditor for creating equitable mortgage.
f. The prospective mortgagor should also undertake that in future if anybody makes
claim of any nature whatsoever over the property and/or against the Bank on the
basis of the so lost original title deed, he/she will indemnify the Bank.
g. Bank should make a publication in two leading newspapers, one in English
Language and other in Vernacular Language, to the effect that prospective
mortgagor has represented to the Bank that original title deeds of his/her property
(details to be given) are lost and has approached the Bank to tender such property
as security, if anyone has any objection or any claim over such property, he/she
may inform the Bank in within 15 days in writing along with proof of his
objection/claim, within the given period. If Bank receives any objection/claim in
response to the publication, the Bank should consider changing the security
because the Bank cannot adjudicate the claim/objection and should avoid the
disputed property. This publication should be kept in record.
h. Registered Mortgage may be explored by the Sanctioning Authority.

The aforesaid safeguards are only indicative, not exhaustive.

15. PAYMENT OF FEE:

Payment of fee for work done by the Bank’s empanelled Advocate under this Policy
shall be paid as per HO Circular No. 815/ 2023-24 (HO L & R Department Ref. No.
337/2023-24) dated 11.01.2024 as amended and reviewed time to time by the
competent authority. Further, this fee shall be borne by the borrower.

16. REGISTRATION WITH CERSAI AND ROC:

Particulars of any charge creating security interest over the property shall be filed with
the CERSAI and ROC, wherever applicable, in terms of provisions of SARFAESI Act
and Companies Act, respectively, within the stipulated period. It is reiterated that all
the charges over the property are mandatorily registered with CERSAI and ROC,
wherever applicable, and reference of the same must be made while considering any
loan proposal.

Page 10 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

It is pertinent to mention here that prior to considering EM of any property as security,

search has to be made in the Data base of CERSAI/ROC to ascertain whether the
property is already mortgaged or not.
Charges for the search payable to CERSAI be recovered by the branches from
borrowers as advised vide HO: CRMD Circulars from time to time.
Further, a comprehensive checklist is enclosed as per Annexure-II, a copy of the
same duly signed by the Branch officials to be kept on record for each case.

17. MARKET INTELLIGENCE:

Market Intelligence envisages that the Field Functionaries should keep abreast of the
developments of the area. It is seen that fraudulent tendencies are part of the
discussion in the society and one cannot fool all the persons all the time. If the Field
Functionaries remain in touch with the social happenings in the area and operate
through a mechanism of intelligence, it is expected that fraudulent activities are
noticed well in advance before the bank falls prey to it.

18. PRECAUTIONS TO BE TAKEN BEFORE ACCEPTING TITLE DEEDS AS

SECURITY:

The following precautions need to be taken by the field functionaries before accepting
Title deeds as security:

i) Equitable mortgage not to be created on the basis of Coloured Xerox copy of the title
deeds.
ii) Obtaining the entire chain of title deeds from the borrower as per legal opinion.
iii) Title deeds not to be given to the borrower/guarantor/mortgagor until satisfaction of
Bank’s dues
iv) It must be ensured that Mutation in Bank’s favour is entered in the Revenue Records
wherever applicable.
v) Property intended to be mortgaged must be physically verified to ascertain as to who
is in occupation of the property.
vi) Property proposed to be mortgaged must not be undivided or un-demarcated.
vii) Laminated Title deeds proposed as security not to be accepted
viii) There should not be a long gap between sanctioning of the loan and disbursement as
the same provides an opportunity to the borrower to mortgage it with some other
institution in the intervening period.

Page 11 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

ix) Before disbursement of loan, the Branch In charge and the Loan Officer shall submit
a certificate as per draft enclosed of Annexure-IV, to the effect that they have
physically verified the properties mortgaged and their valuations. This certificate is
part of indispensable requirements for sanction of loan and should be invariably
attached with loan documents.
x) It has to be ensured that entire chain of title deeds is obtained from the borrower and
the advocate should invariably state that he has inspected all relevant records, stamp
papers and documents concerning the property and the property papers are genuine
and the title is clear and marketable. The advocate in his opinion must state
specifically which documents of the chain are to be obtained in original. The
Advocate should also attach a declaration, which is a mandatory requirement.
xi) Whenever title deeds are offered as security for availing loan facility and for creating
Equitable Mortgage, the Bank should immediately apply through empaneled
Advocate to the concerned sub-registrar for a certified copy of the title deed. Receipt
of such a certified copy from the Registrar's office and its cross tallying with the
original title deeds in Bank's hand, is a proof to genuineness of the documents of
title.
xii) Bank’s charge should be got registered with ROC and CERSAI, wherever applicable,
in terms of provisions of Companies Act and SARFAESI Act respectively, within the
stipulated period.
xiii) Bank should not part with any of the original documents of title during the currency of
the credit facility, as unscrupulous borrowers obtain title deeds on some frivolous
excuse and then may create encumbrance on the property without Bank's
knowledge.
xiv) Branch Manager should carry out proper pre sanction inspection to identify the
property mortgaged and also conduct post disbursement inspections of properties at
periodical intervals.
xv) At the time of taking over of the Charge of the Branch by the new incumbent
Incharge, it should be ensured that all the properties mortgaged to the Bank in Loan
Accounts exceeding Rs.50 crores, are visited by the Branch Incharge /Loan
Officer/Loan Manager to ensure that security cover is intact.
xvi) Stamp Paper to be procured On-line or the name of the vendor and its Registration
Number must be mentioned on the back side of the stamp paper.

xvii) In case property proposed to be mortgaged with the Bank is situated in other
states, the Zonal Office within whose jurisdiction the property is situated will provide

Page 12 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

the name of panel advocate and the Branch shall obtain the investigation and title
search report from such panel advocate, recommended by Zonal Office.

19. PRECAUTIONS TO BE TAKEN AT THE TIME OF OBTAINING REVIVAL

LETTER/BALANCE & SECURITY CONFIRMATION LETTER

The following precautions needs to be taken by the field functionaries at the time of
obtaining Revival Letter/Balance& Security Confirmation Letter:

a) Revival Letter/Balance &Security Confirmation Letter should be duly filed as

per the sanction terms. Further, it must be ensured that Revival Letter and
Balance & Confirmation Letter should not be got signed from the
Borrower/Guarantor at the time of Loan process /Sanction /Documentation
/Disbursal.
b) All the applicable fields/schedule in the Revival Letter/Balance &Security
Confirmation letter should be duly filed as per the revised formats which
hereby are annexed as Annexure VI and Annexure VII, respectively.

c) No applicable fields should be left blank in Revival Letter/Balance & Security

Confirmation letter, giving room for disputes or ambiguity/uncertainty.
d) The Revival Letter/Balance & Security Confirmation letter should be
executed/signed by the Borrower/Guarantor/Legal Heir in the presence of
Branch Manager/Bank Official/Authorised Representative of the Bank on the
actual date when it is executed by them to avoid difficulty in identification, to
prevent fraud, forgery, misrepresentation, coercion etc.

e) The Revival Letter/Balance & Security Confirmation Letter should be

executed/signed in the presence of Two Witnesses.

f) In case the Borrower/Guarantor/Legal Heir does not execute the Revival

Letter/Balance& Security Confirmation Letter or delays the execution thereof,
this shall be termed as default by the Borrower/Guarantor/Legal Heir and the
Branch shall proceed to recover the Bank’s dues by adopting legal recourse.

It is reiterated that due care and caution is to be exercised not only at the time of
execution of documents including Revival Letter/Balance & Security Confirmation
Letter but also during initiation of legal/quasi legal process against the
Borrower/Guarantor. Only the correct/complete/duly filed formats/documents to be

Page 13 of 39
 Policy on Title Investigation, Index Inspection of properties and Non-
Encumbrance Certificate

filed before any Judicial/Quasi-Judicial Authority with all diligence. The authenticity of
such documents be verified/confirmed by the Branches before filing the same before
any Judicial/Quasi Judicial Authority.

20. KNOW YOUR CUSTOMER (KYC) NORMS

The same is governed by the extant guidelines of HO: KYC & AML Cell.

21. ACTION AGAINST ADVOCATES

The guidelines regarding the same are mentioned in HO: L&R Circular No. 815/2023-
24 dated 11.01.2024 and Fraud Risk Management policy no. 2//2023-24 dated
04.04.2024 of HO: Fraud Monitoring Department. As per, HO: L&R Circular No.
815/2023-24 dated 11.01.2024, Bank to seek explanation from the Advocate/Law
Firm who wrongly certify as to clear titles in respect of assets by negligence or
connivance and if no reply/satisfactory clarification is received from the Advocate/Law
Firm within one month, the name of Advocate/Law firm may be reported to IBA as per
procedure prescribed by HO: Fraud Management Department policy no. 2//2023-24
dated 04.04.2024 apart from depaneling them and reporting there name to the
concerned Bar Council.
In furtherance to aforesaid, as per HO: Fraud Management Department policy no.
2//2023-24 dated 04.04.2024, if on examination the connivance/involvement/malafide
intention of third party entity which includes architects, Valuers, CAs, Advocates etc is
clearly proved with documentary evidence, his/her name must be included in FIR
besides taking action for depaneling, informing to regulator/Governing
bodies/appropriate authorities along with referring their names to IBA for inclusion in
Caution List.

22. ACTION AGAINST VALUERS

The guidelines regarding the same are mentioned in Fraud Risk Management policy
no. 2//2023-24 dated 04.04.2024 of HO: Fraud Monitoring Department.

23. VALUATION OF SECURITIES

The guidelines regarding the same are mentioned in HO: Credit Monitoring and Policy
Department Circular No. 486/2022-23 dated 07.09.2022.

Page 14 of 39
 (To Be Filled by Advocate)

ANNEXURE-I
The ...................................... Manager,
Punjab & Sind Bank,
BO……………………
……………………………………….

Dear Sir,

With reference to your letter No…………… dated……………, I submit my scrutiny report as

hereunder:-

1. a) Name & Address of Borrower/Mortgagor/Title holder:

b) Status of mortgagor in the A/c (Whether Sole proprietor, Partner, Director, Karta, Trustee, Agent
or Guarantor or Co-Borrower):

2. a) Name of the Unit/Concern/Company/Person offering the Property/(ies)as security:

b) Constitution of the unit/concern/person/body/authority offering the property for creation of charge:

c) State as to under what capacity security is offered (whether as joint applicant or borrower or as
guarantor, etc.):

3. Details/Description of the title Deeds/documents scrutinized(including Link Deeds/Parent deeds),

House Tax Receipts, Utility bills, other relevant documents to be deposited for creation of the
mortgage (with full particulars regarding nature of documents, date of execution and details of
registration):-

Sl. Document Name of Description of Name of the Name of Original/

No No.& Date Office of Document Executants Beneficiary in certified
Registrar Executed by whose favour the copy
where whom and in document is
registered whose favour or executed
issued by which
office

Page 15 of 39
4. Details/description of property/properties:

Sl. Document Survey Extent/ Location/Sub Boundary

No. No. &Date No/Khata Areas of District/Distt./Village/
No/House Land City/ Municipality,
No/Site No.

5. Brief History of the property and how the owner/mortgagor has derived title?

6. Whether the mortgagor has clear title and capacity to contract for creation of mortgage(Not a
minor, Lunatic or undischarged insolvent, etc):

7. What is the nature of title of the owner (Whether lease hold, or free hold, or co-owner, or joint-
owner or possessory right, or minor’s right or any other type of right? Clarify:-

8. Whether the property is freehold or Leasehold. If Leasehold then period of Lease and whether
permission of the Lessor is obtained to mortgage the property and if Freehold whether Urban Land
Ceiling Act applies and Permissions to be obtained:-

9. How mortgagor’s right or title in the Property is derived (whether self acquired,
ancestral/inheritance or by succession or otherwise). If Ancestral then mode of Succession and
whether Original Will/Probate is available and the Legal compliance to be done to create charge by
bank over the property:-

10. Whether the Mortgagor is Co-owner/ Joint Owner and or any partition of the property is made
between the members of the family through Family Deed. If Yes, whether Original Registered
Partition Deed is available or it is only a family settlement. And the necessary Legal Compliance to
be done to create charge over the property:-

11. Whether Mortgagor is in exclusive possession of property proposed to be mortgaged:-

Page 16 of 39
12. Tracing of title & Chain of title in favour of Mr./Ms… ...................................................... proposed
mortgagor (here set out chain of title in detail & chronology starting from earliest document
available. The Nature of document/Deed conveying the title should be mentioned along with the
type of right it creates) together with names and descriptions of Parties to documents:-

13. Whether title is clear and property is free from any encumbrance (enclose relevant receipts of
search):-

14. No. of years(13/30)for which search made in Sub registrar’s/Registrar’s Office:-

15. Whether name of borrower/Title Holder is mutated in municipal records:-

16. Whether name of borrower/Title Holder is shown in Revenue/Land records:-

17. Whether title to properties is clear, unambiguous, marketable & property is saleable:-

18. Whether there is any Bar/restriction for creation of equitable mortgage under any Act, State Law
or Rule/notification(like Ceiling Act, Land Acquisition Act, State Cooperative Societies Act, Societies
Registration Act or Apartment/Flat Ownership Act or Income Tax Act):-

19. Whether any permission/consent/ no objection is required & if so, it is obtained (State the letter
no. and the Authority/Statutory Body/Court concerned):-

20. Additional documents required/formalities to be completed by the proposed mortgagor(State

specially in case of flats/properties in cooperative societies whether allotment letter, possession
letter, share certificate, affidavit, power of attorney, etc is required):-

21. List out the title Deeds to be deposited to create mortgage by Deposit of Title Deeds in favour of
Bank by above said mortgagor Mr./Ms……………………………………

22. Whether all original title deed are available and scrutinized:-

23. Whether Deeds are duly executed/stamped and registered:-

24. Whether the property is freehold or leasehold or self-occupied or tenanted? If tenanted, whether
the property can be taken as mortgage and what precautions to be taken:-

25. If owner is Company, Partnership firm, Trust, temple, Wakf or other legal person, how title is
affected by its Memorandum and Articles of Association, Partnership deed or Rules of bye laws and
what are the precautions to be taken under rules or bye-laws:-

Page 17 of 39
26. If property to be mortgaged is a flat /apartment, in residential or commercial complex, how far,
independent title is ensured and how the enjoyment of common areas and facilities are ensured to
the flat-owner (mortgagor), what are the documents / records to be taken from builders/owners/their
bankers:-

27. Whether the Land is Agricultural Land?(If yes, give details as per Annexure I-A):-

28. Whether any POA is involved in the chain of title?(If yes, give details as per Annexure I-B):-

29. If the property has been transferred by way of Gift/Settlement Deed?(If yes, give details as per
Annexure I-C):-

30. Whether there are partition/family settlement deeds? (In case of partition/family settlement
deeds, please give details as per Annexure I-D):-

31. a)In case of partnership firm, whether the property belongs to the firm and the deed
is properly registered:-

b) If property belongs to partners, whether legal compliance to mortgage the same

have been completed as per applicable laws:-

c) Whether the person(s) creating mortgage has/have authority to create mortgage

for and on behalf of the firm?

32. a) Whether the property is involved in or subject matter of any litigation which is
pending or concluded?

b) If so, whether such litigation would adversely affect the creation of a valid mortgage
or have any implication of its future enforcement?

c) Whether the title documents have any court seal/marking which points out any
Litigation/attachment/ security to court in respect of the property in question?
In such case please comment on such seal/marking:-

33. Whether the title documents include any testamentary documents/wills?

(IF yes, give details as per Annexure I-E):-

34. Whether the property belongs to any trust or is subject to the rights of any trust?
(If yes, give details as per Annexure I-F):-

35. Whether the Real Estate Project comes under Real Estate (Regulation and Development) Act,
2016? (If yes, give details as per Annexure I-G):-

Page 18 of 39
36. Whether the property belongs to church/temple or any religious/other institutions/ subject to any
waqfrighthavinganyrestrictionincreationofchargesonsuchproperties? Precautions/permissions, if any
in respect of the above cases for creation of mortgage?

37. If the property is a flat/ apartment or residential /commercial complex, (if yes, please check and
comment as per Annexure I-H):-

38. Whether the Bank will be able to enforce SARFAESI Act, if required, against the property
offered as Security?

39. Whether the particulars of registration as given in the title deed shown to the counsel tally with
the particulars as stated in the records of the Registrar’s Office?

40. Whether there are any restrictions regarding sale of the property to be mortgaged? (In some
States, there are restrictions for sale of property to residents outside the State).

41. Whether NEC is available online? Yes or No. (If Yes, whether copy annexed and If No, Reason
thereof)

42. Whether any link deed is missing?

43. Additional suggestions, if any to safeguard the interest of Bank/ensuring the perfection of security:-

Date:
Place: Signature of the Advocate

Name:
Mobile:

Page 19 of 39
 C E RT I FICATE

I have physically checked, examined and scrutinized the original documents of the title deeds
as well as the chain of title of property in favour of the Borrower(s)/builder/allottee(s) intended
to be deposited relating to the schedule property/(ies) and offered as security by way of
*Registered/ Equitable/English Mortgage (* Please specify the kind of mortgage) and that the
documents of title referred to in the opinion above are valid evidence of Right, Title and
Interest in favour of Borrower(s)/builder/allottee(s) and that if said documents are deposited
and Registered/Equitable mortgage is created in the manner required by law, it will satisfy the
requirements of creation of Registered/Equitable mortgage and I further certify that:-

1. There are no prior mortgage/charge/ encumbrances whatsoever as could be seen from the
encumbrance certificate for the period from ……………..………. to …………..……….
pertaining to the immovable property/ies covered by the above said title deeds. The property
is free from all encumbrances.

2. I confirm having made a search in the Land/Revenue records. I further confirm having
verified and checked the title deeds submitted for legal scrutiny with the records of the
relevant Government Offices,/ Sub- Registrar (s) Office, Registrar of Companies Office,
Wakf board (wherever applicable) and through online mode and I hereby opine that to the
best of my knowledge, the title deed/s submitted for verification are genuine. I do not find
anything adverse which would prevent the Title Holders from creating a valid mortgage.

3. Following scrutiny of Land Records/Revenue records, relative title deeds, certified copies of
such title deeds obtained from concerned registrar office and encumbrance certificate (EC),I
hereby certify the genuineness of the Title Deeds. Suspicious/Doubts, if any, have been
clarified by making necessary inquiries.

4. Minor/(s) and his/her/their interest in the property/(ies) is to the extent of

……………………………(Specifiy the share of the minor with name).(Strike out if not applicable).

5. In case of second/subsequent charges in favour of the Bank, there are no other

mortgages/charges other than already stated in the Loan documents and agreed to by the
Mortgagor and the Bank (Delete, whichever is inapplicable).

6. The mortgage, if created, will be perfect and available to the bank for the liability of intending
borrower (s), Shri/Smt/ M/s…………………………………....

7. I certify that Shri/Smt/M/s............................................................ has/have an absolute, clear

and marketable title over the scheduled property/(ies). I further certify that the title deeds are
genuine and a valid mortgage can be created and the said mortgage would be enforceable.

Page 20 of 39
 8. That the mortgage deeds/documents should be signed by the following persons(s) to create
valid mortgage/ equitable mortgage.

a.

b.

9. In case of creation of Mortgage by Deposit of title Deeds, I/we certify that the deposit of
following title deeds/ documents would create a valid and enforceable mortgage/Equitable
mortgage.

a.

b.

10. There are no legal impediments for creation of the Mortgage under any applicable
Law/Rules in force.

11. It is certified that the property is SARFAESI Compliant.

SCHEDULE OF THE PROPERTY/ (IES) IS/ARE AS UNDER:

Bounded By : East:
West:
North:
South:

I/We, shall be liable/responsible, if any loss is caused to the bank due to negligence on my/our part
in making the search and the bank has unqualified right to publish my name for including in the
caution list being maintained by the INDIAN BANKS’ ASSOCIATION OR RESERVE BANK OF
INDIA OR ANY OTHER SUCH BODY for circulation amongst Banks/ Financial Institutions.

Date:

Place:

(Signature of the Advocate)

Page 21 of 39
 Annexure I-A

Investigation in regard to Agricultural Land– If it

is Agricultural Land, details as under :
(a)Whether land is surplus. If so, give specific details.

(b)Whether the land is under self-cultivation.

(c)If & is owned in different Khatas or is under joint

share, give specific share in each khata.

(d)If consolidation of holdings / acquisition

proceedings, etc., is in progress in the area whether
transfer of land is possible under State enactments.

(e)Whether any prior/hidden charge exists against

the Land, Non-encumbrance should be for a period
of 30 years preceding the date of this nil-
encumbrance certificate.

(f)Whether any prior/hidden charge exists against the

Land, Non-encumbrance should be for a period of 30
years preceding the date of this nil-encumbrance
certificate.

(g)Whether mutation has been completed in case of

existing charges / pending charges.

(h)Whether any Government loan / Co-op. Loan, etc.

have been raised against the land – details about the
charges / encumbrances may be specified.

(i)Whether the local law permits mortgage of

Agricultural land and whether there are any restriction
for creation/enforcement of mortgage.

(j) In case of conversion of Agricultural Land for

commercial purpose or otherwise, whether requisite
procedure followed/permission obtained.

(k) Relevant records/documents as per local laws,

verified/to be verified to ensure the validity of the title
and right to enforce the mortgage

Page 22 of 39
 Annexure I-B

If POA is involved in the chain of title give details as under:

(a) Whether the POA involved is one coupled with interest,
i.e. a Development Agreement-cum-Power of Attorney. If
so, please clarify whether the same is a registered
document and hence it has created an interest in favour of
the builder/developer and as such is irrevocable as per law.
(b) In case title documents is executed by the POA holder,
please clarify whether the POA involved is (i) one executed
by the Builders viz. Companies/Firms/Individual or
Proprietary Concerns in favour of their
Partners/Employees/ Authorized Representatives to sign
Flat Allotment Letters, NOCs, Agreements of Sale, Sale
Deeds, etc. in favour of buyers of flats/units(Builder’s
POA)or(ii)Other type of POA
(Common POA)
(c)In case of Builder’s POA, whether a certified copy of POA
is available and the same has been verified/compared with
the original POA.
(d)In case of Common POA(i.e. POA other than Builder’s
POA), please clarify the following clauses in respect of POA.
i) Whether the original POA is verified and the title
investigation is done on the basis of original POA?
ii) Whether the POA is a registered one?
iii)Whether the POA is a Special or general one?
iv)Whether the POA contains a specific authority for
execution of title documents in question?
(e) Whether the POA was in force and not revoked or had
become invalid on the date of execution of the document in
question?(Please clarify whether the same has been
Ascertained from the office of sub-registrar also?)
(f)Please comment on the genuineness of POA?
(g) Whether mortgage is being created by a POA holder,
check genuineness of the Power of Attorney and the extent
of the powers given therein and whether the same is
properly executed/stamped/authenticated in terms of the
Law of the place, where it is executed.
(h) The unequivocal opinion is being created by a POA
holder, check genuineness of the Power of Attorney and
the extent of the powers given therein and whether the
same is properly executed/stamped/ authenticated in terms
of the Law of the Place, where it is executed

Page 23 of 39
 Annexure I-C

(a)The Gift/Settlement Deed is duly

stamped and registered

(b)The Gift/Settlement Deed has

been attested by two witnesses;

(c)The Gift/Settlement Deed transfers

the property to Donee;

(d)Whether the Donee has accepted

the gift by signing the Gift/Settlement
Deed or by a separated writing or by
implication or by actions?

(e)Whether there is any restriction on

the Donor in executing the
gift/settlement deed in question?

(f)Whether the Donee is in

possession of the gifted property?

(g)Whether any life interest is

reserved for the Donor or any other
person and whether there is a need
for any other person to join the
creation of mortgage;

(h)Any other aspect affecting the

validity of the title passed through the
gift/settlement deed.

Page 24 of 39
 Annexure I-D

In case of partition/family settlement

deeds:
(a)Whether the original deed is available for
deposit. If not the modality/procedure to be
followed to create a valid and
Enforceable mortgage.

(b)Whether mutation has been effected and

whether the mortgagor is in Possession and
enjoyment of his share

(c)Whether the partition made is valid in law

and the mortgagor has acquired a
Mortgageable title thereon.

(d)In respect of partition by a decree of court,

whether such decree has become final and
all other condition/formalities are
completed/complied with.

(e)Whether any of the documents in question

are executed in counter parts or in more than
one set? If so, additional precautions to be
taken for avoiding Multiple mortgages?

Page 25 of 39
 Annexure I-E

(a) In case of wills, whether the will is

Registered will or unregistered will?
(b) Whether will in the matter needs a
Mandatory probate and if so whether the
same is probated by a competent court?
(c) Whether the property is mutated on the
Basis of will?
(d) Whether the original will is available?
(e) Whether the original death certificate of
The testator is available?
(f) What are the circumstances and/or
documents to establish the will in question
is the last and final will of the testator?

(g) What are the circumstance such as the

availability of a declaration by all the
beneficiaries about the
genuineness/validity of the will, all parties
have acted upon the will, etc., which are
relevant to rely on the will, availability of
Mother/Original title deeds are to be
explained.)

Page 26 of 39
 Annexure I-F

Whether the property belongs to any trust

or is subject to the rights of any trust
property. If so, give details as under:

(a)Whether the property belongs to any

trust or is subject to the rights of any
trust?

(b)Whether the trust is a private or public

trust and whether trust deed specifically
authorizes the mortgage of the property?

(c)If YES, additional

precautions/permissions to be obtained
for creation of valid mortgage?

(d)Requirements ,if any for creation of

Mortgage as per the central/state laws
applicable to the trust in the matter.

Page 27 of 39
 Annexure I-G

If the Real Estate Project comes under Real

Estate (Regulation and
Development)Act,2016 then give the
Following details:

(a)Whether the project is registered with the

Real Estate Regulatory Authority? If so, the
details of such registration are to be
furnished,

(b)Whether the registered agreement for

sale as prescribed in the above
Act/Rules there under is executed?
(c)Whether the details of the apartment/
plot in question are verified with the list of
number and types of apartments or plots
booked as uploaded by the promoter in the
website of Real Estate Regulatory
Authority?

(d)Please advise about all legal

formalities/procedures required under law
to be complied with for creation of Valid
mortgage in favour of the bank

Page 28 of 39
 Annexure I-H

If the property is a flat/ apartment or

residential/commercial complex, please
check and comment as under:

a) Promoter’s/Landowner’s title to the land/

building:

b) Development Agreement/Power of
Attorney:

c) Extent of authority of the Developer/

builder:

d) Agreement for sale(duly registered):

e) Requirement of registration of sale

agreement, development agreement ,POA,
etc:

f) Approval of building plan, permission of

appropriate/local authority, etc

g) Conveyance in favour of Society/

Condominium concerned:

h) Occupancy Certificate/allotment letter/

letter of possession:

i) Membership details in the Society etc:

j) Share Certificate:

k) No Objection letter from Society:

l) All legal requirements under the

local/Municipal laws, regarding ownership of
flats/Apartments/ Building Regulations,
Development Control Regulations, Co-
Operative Societies’ Laws etc:

m ) Legal compliance to be done to create a

valid charge by bank over the property:

Page 29 of 39
 FORMAT OF COMPREHENSIVE CHECKLIST OF DOCUMENTS

ANNEXURE-II

Branch Office
Title of Borrowal A/c
Description of Immovable Property

Observations Y/N DATE

1.Observance of KYC Guidelines in respect of the
Borrower(s)/Guarantor(s)/Mortgagor(s)

2. Opening of account by owner of immovable property who has

offered the immovable property as collateral security against loans
to third party or

Proof of details of the Bank account with other Banks/ Branches of

our Bank of the mortgagor on record or

In cases where the mortgagor is not our account holder and

unwilling to open an account with us, whether:

➢ Documents of his identity proof, residential proof etc. taken

➢ A letter of request showing intention to create mortgage by
deposit of title deed obtained.
➢ Physical verification done by BM/Loan Officer
3.Whether letter through registered post sent to owners of immovable
property to confirm residential address and their willingness to offer
security as collateral or
BM or any staff incumbent visited the residence of proposed
mortgagor to confirm above.
4.Report on pre-sanction survey
5.a. Whether originals of complete chain of title deeds provided to
Advocate before Inspection of Index/ Revenue Record.
b.Whether original title deed and its chain of documents match with
the legal opinion.
6.i) Legal Opinion/ Index Opinion/ Non Encumbrance Report taken at
the time of receipt of loan proposal (1st Index Inspection).
ii) Whether Legal Opinion/Index Opinion/Non Encumbrance report
taken after disbursement of loan (2nd Index Inspection)
iii) A ‘Report on Title’ taken as per format
iv) Whether immovable property is properly demarcated.
v) Copy of sanctioned plan obtained
vi) Whether all statutory dues have been paid up-to-date and proof
of the same put on record of the Bank.

Contd..

Page 30 of 39
Branch Office
Title of Borrowal A/c
Description of Immovable Property

Observations Y/N DATE

7.i) Certified copy of the Title Deeds obtained directly from
Sub Registrar before disbursement of loan.

ii) A certificate from Advocate that the certified copy tallies with
the original kept on record on re-checking and that the
mortgage is proper.
8.a. Valuation of the immovable property obtained from approved
valuer
b. Verification of immovable property by BM/Accountant of the
Branch independently before disbursement
c. The valuation of immovable property, during the 1st year of the
registration deed, taken as per the prevalent collector rate/ circle
rate or realizable value of immovable property whichever is lower
for exposure upto Rs.50 crores only. Or
The valuation of immovable property, during the 1st year of the
registration deed taken equivalent to the consideration mentioned
in the Said deed in cases where exposure of the Bank is more than
Rs.50 crores.
9.a.Whether NOC/Permission from Society/Concerned Authority
obtained before creation of mortgage.
b. Lien marked after creation of mortgage/ mutation got done in
Bank’s favour in Revenue Record/ Intkal approved by the
Competent Authority.
c.Equitable mortgage got registered/noted(in respect of States
which have such provision)before allowing disbursement.
10. a. Whether Bank’s Charge got registered with CERSAI/ROC.
b. In Consortium Advances, the value assessed by the approved
valuer(s) engaged by Lead Bank, taken as valuation.
c.In multiple Banking cases,value assessed by the approved valuer
of our Bank or valuation of other Banks, whichever is less, taken into
consideration.

11.Vetting of documents

12.Insurance of Super structure got done.

13.Post-Disbursement visit to ensure end use of funds
14.In cases, where negative lien is created, whether Deed of Negative
lien
Duly approved by Bank’s counsel is obtained on Non-Judicial
Stamp Paper of appropriate value besides chain of title deeds.

Officer (Loan) Branch Incharge

Page 31 of 39
 FORMAT FOR VETTING OF LEGAL OPINION ANNEXURE-III

1 Name of the borrower

2 Name of the person who has offered the
property to be mortgaged
3 Details of Property to be mortgaged
4 Whether Index Inspection done as per Bank
norms?
5 Whether as per legal opinion Advocate has
confirmed that chain of title deed is clear,
complete, unencumbered, marketable and
enforceable?
6 Whether equitable mortgage can be created or
not? If not, type of mortgage recommended by
Advocate and are you concurring thereof?
7 Whether Certified copy taken or not?
8 Whether comparison certificate given by the
advocate for tallying certified copies with the
original title deeds?
9 Whether the opinion has been given on the
basis of original papers or photocopies? If
photocopies, reasons thereof?
10 Whether SARAESI Act is applicable or not
11 If the property offered comes under RERA
(project), whether Advocate has confirmed that
all the required approvals are on record?
12 Whether boundaries are properly mentioned in
the opinion as per Title deed
13 Whether the property has been mutated in the
name of the person offering the mortgage? If
no, reasons thereof given by Advocate is
justifiable?
14 In case of Property registered under Society,
whether legal opinion has mentioned the
required compliance as per bank’s guidelines?
15 Whether the property is freehold/leasehold? In
case of lease hold property, whether
permission/NOC to mortgage is required or
not? If yes, whether Advocate has opined for
requirement of NOC/permission?
16 Whether there is any bar/restriction on
mortgage of the property under any Act or
State/Local laws? If yes, then whether the
opinion given by Advocate to create valid
mortgage is legally tenable?
17 Whether certificate of genuineness of title deed
given by Advocate is as per bank’s guidelines?
18 Final remarks/observations on property (ies), if
any.
Signature of Advocate/Law Officer Dated:

Page 32 of 39
 ANNEXURE-IV

VISIT CUM VALUATION REPORT

(To be given by Loan Officer and Branch In charge)

Name of the account

1. Name & address of landlord/landlady:

2. Whether Self-Occupied OR in possession of tenants:

3. Whether Agricultural/Residential/Industrial/Commercial:

4. Date of purchase of property and consideration paid:

5. Particulars of property:

a. LAND

i. Area in square meters:

ii. Rate per sq. meter in that Area:
iii. Rate per sq. meter(floor rates)
iv. Total value of land:

b. BUILDING

Value of building keeping in view

the built up area, no. of stories &
type of superstructure etc.

6. Total value of land & building (a+b):

7. Municipal/Revenue No.:

8. Date upto which taxes paid:

Certified that I/we have personally visited on the

site of the property (ies) and have discreetly and with
due diligence verified the market value of the said
property (ies) after taking into account the factors
such as depreciation, Distress sale, unauthorized
construction, lack of legal mortgage, third party claims
etc. is not less than Rs. lacs
(Rupee )

Loan Officer Branch

Incharge

Name Name
: :
Date: Date:

Page 33 of 39
 ANNEXURE-V

(DECLARATION BY THE ADVOCATE)

a. That I have physically checked the original documents of the title deeds as well as the chain
of title of property.

b. That following documents are required to be deposited with the title in the Bank.(Detail of
title deeds, House Tax Receipts, affidavits etc.):

c. That mortgage deeds/documents should be signed by the following person(s) to create valid
equitable mortgage:

d. That the SARFAESI Act can be enforced on the property in question.

Signature of Advocate

Name of Advocate

Date

Page 34 of 39
 Form No.440R (ANNEXURE VI)

STAMP TO BE
AFFIXED &
CROSS SIGN
PUNJAB & SIND BANK

REVIVAL LETTER
With reference to the facility/loan granted vide Sanction Letter No. dated for which
my/our cash credit/loan/overdraft account No._________ is being maintained with Punjab &
Sind Bank [Branch Name and
Address in respect whereof a Facility Agreement/Loan Agreement/Cash Credit
Agreement/Overdraft Agreement dated for Rs. (Rs.
) with interest was executed. I / we acknowledge for the purpose
of Section18 of the Indian Limitation Act, 1983 and any like limitation law that I am/ we are liable
to you for payment of the entire amount outstanding in the said cash credit/loan/overdraft
account along with interest in respect of all present and future indebtedness and liabilities
granted/secured thereby which the said Facility Agreement/Loan Agreement/Cash Credit
Agreement/Overdraft Agreement is to remain in force with all relative securities, agreements
and obligations, (i.e. documents executed by me / us in agreements and obligation), i.e.
documents executed by me / us.
l/We acknowledge and confirm the debit balance of Rs. (Rs.) outstanding as on__ in
my/our aforesaid Cash credit/loan/overdraft account No(s) ______
Dated / /20 उधारकर्ाा/कानूनी उत्तराधिकारी
Borrower(s)/Legal Heir(s)

*I / We had executed guarantee bond dated , for the facility/loan/ granted

vide Sanction Letter No. dated ,agreeing to be jointly and
severally liable for all amounts due in the cash credit/loan/overdraft account. 1/We hereby
acknowledge and confirm my/our liabilities in respect of my / our aforesaid guarantee
which hereby stands renewed.
*{Only required in case facility/loan is secured by way of corporate/personal
guarantee}

जमानर्ी/कानूनी उत्तराधिकारी
Guarantor(s)/Legal Heir(s)
Witness/गवाह

1.
2.

Page 35 of 39
 Form No.458R (ANNEXURE VII)

PUNJAB & SIND BANK

BALANCE & SECURITY CONFIRMATION LETTER

स्वीकृधि पत्र संख्या__________ , धिनां धकि _______द्वारा धिए गए िथ्य/ऋण के संिर्भ में, धिसके धिए
मेरा/हमारा नकि क्रेधिट/ऋण/ओवरिराफ्ट खािा सं ख्य____पंिाब एंि धसंि बैंक(शाखा का नाम और पिा)में रखा
िा रहा है धिसके संबंि में एक सुधविा समझौिा/ऋणस मझौिा/कैशक्रेधिटस मझौिा/ओवरिराफ्टस मझौिा रुपये के
धिए धिनां धकि___________ ________(रु.__________) ब्याि सधहि धनष्पाधिि धकये गये।

With reference to the facility/loan granted vide Sanction Letter No. dated , for which my/our
cash credit/loan/overdraft account no.____is being maintained with Punjab & Sind Bank(Branch
Name and Address) in respect whereof a Facility Agreement/loan Agreement/Cash Credit
Agreement/Overdraft Agreement dated for Rs. (Rs.) with interest were executed.

मैं/हम सीमा अधिधनयम, 1963 की िारा 18 के उद्दे श्य से स्वीकार करिे हैं धक मैं/हम सर्ी विभमान और र्धवष्य की
ऋण ग्रस्तिाओं और िे निाररय ं के संबंि में ब्याि सधहि उक्त नकि क्रेधिट/ऋण/ओवरिराफ्ट खािे में बकाया पूरी
राधश के र्ुगिान के धिए आपके प्रधि उत्तरिायी हैं ।इसके द्वारा सुरधिि धकया गया और उक्त सुधविा
समझौिा/ऋणसमझौिा/कैशक्रेधिट समझौिा/ओवरिराफ्ट समझौिासर्ी संबंधिि प्रधिर्ूधिय ,ं समझौि ं और िाधयत् ं
(यानी मेरे/हमारे द्वारा धनष्पाधिि िस्तावेज़) के साथ िागू रहे गा।

I/We acknowledge for the purpose of Section18 of Limitation Act, 1963 that I/We are liable to
you for payment of the entire amount outstanding in the said cash credit/loan/overdraft account
with interest in respect of all present and future indebtedness and liabilities secured thereby and
the said Facility Agreement/Loan Agreement/ Cash Credit Agreement/Overdraft Agreement
shall remain in force with all relative securities, agreements and obligations (i.e. documents
executed by me /us}

Page 36 of 39
 Form No.458R (ANNEXURE VII)

l/We acknowledge and confirm that the debit of Rs. (Rs. ) as sum
outstanding as on in my/our aforementioned account No(s)

Dated://20

Revenue Stamp
Place:

उधारकर्ाा / जमानर्ी/कानूनी उत्तराधिकारी

Borrower(s)/Guarantor(s)/Legal Heir(s)

Witness/गवाह

1.
2.

Page 37 of 39
 Advocate’s Report on vetting of security documents ANNEXURE-VIII

Name of the Branch and Account:

QUANTUM OF LIMITS
NATURE OF LIMITS

SECURITIES STIPULATED:

SANCTIONED ON: DISBURSED ON:

AMOUNT DISBURSED:

DOCUMENTS OBTAINED:

A} FOR PERSONAL LIABILITY OF PARTIES: B} FOR MOVABLE & IMMOVABLE

SECURITIES:

OBSERVATIONS OF ADVOCATE
(DOCUMENT-WISE):

NAME OF THE ADVOCATE:

COMMENTS OF ADVOCATE VETTING THE

SECURITY DOCUMENTS

DEFICIENCIES IF ANY FOUND IN

DOCUMENTS

DETAILS OF DEFICIENCES FOUND IN THE

DOCUMENTS(IF ANY)

Page 38 of 39
CERTIFICATE BY ADVOCATE:

▪ THE DEFICIENCY(S) AS POINTED OUT ABOVE (IF ANY) HAS/HAVE BEEN

RECTIFIED.

▪ NO OTHER IRREGULARITY (IES) INVALIDATING BANK’S CLAIM AGAINST THE

PARTIES AND PROPERTIES ARE FOUND.

▪ THE BRANCH HAS OBTAINED ALL RELEVANT DOCUEMENTS FOR LIMITS SANCTIONED.

▪ THE SECURITIES CREATED ARE AS PER THE SANCTION STIPULATIONS.

▪ RELEVANT SEARCHES ON THE PROPERTY MORTGAGED ARE DONE BY THE ADVOCATE.

▪ HYPOTHECATION/MORTGAGE CREATED IS LEGAGLLY ENFORCEABLE.

▪ ALL THE DOCUMENTS ARE ADEQUATELY STAMPED AND ARE IN ORDER

DATE: NAME & SIGNATURE OF ADVOCATE

Page 39 of 39