Seeking advise in case of guarantor for immovable property.

2 years ago

Dear sir,

One of my relatives had avail loan 10 years ago from the cooperative bank for construction of commercial property for which I had signed as a guarantor. I believe that he was a constant defaulter to pay installment but somehow he had managed bank staff & bank also for their own benefit if any, renewed his loan for higher value by mortgaging the same constructed property.

3 years back he had been declared defaulter by his bank and seized his constructed property for Bank Auction.

In the process of Bank Auction, Even after three consecutive attempts, his bank failed to sell his property to any buyer due to higher auction value.

In the next step, according to The Maharashtra Cooperative Societies Act 1960, under Rule 85 & Section 100 for Transfer of property that cannot be sold, the bank has transferred this property in favor of the Bank itself.

I am seeking your advise to discharged from guarantor liabilities since I think the bank has given more loans against overvalued mortgage property. Also, the type of agreement between the principal debtor and the Bank differs from the original agreement for which I have no concerns in a later stage according to the Maharashtra Cooperative Societies Act 1960.

Kindly advise.