Can you get a home loan in the absence of letter of allotment?

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The landlord of the house that I am willing to buy has lost the original letter of allotment. Although, the owner  obtained a certified true copy (CTC) after lodging an e-FIR and  submitting an indemnity bond. But the bank is unwilling to give a loan based on the CTC letter of allotment for fear of misuse of the missing original letter of allotment. What can I do in this regard?

— Name withheld on request

 

Based on the limited information provided to us, we assume that by the landlord, you mean the owner of the flat, whose title document i.e., the original letter of allotment, by virtue of which the house was allotted to or purchased by him is lost.

In the instant case, over and above submitting e-FIR and indemnity bond, you may check with the concerned bank if it is willing to sanction the loan, if the owner of the flat publishes a public notice informing the public regarding the loss of the letter of allotment (CTC copy of which is available) and inviting claims/ objections in respect of the transfer of the house, in the daily local newspapers in English and the local language where the flat is situated and no response pursuant to the publication of the notice is received within the prescribed period, as mentioned in the public notice. 

Normally, the period is anywhere between 7-21 days depending on the facts of the case. Additionally, though not strictly applicable to the facts of the present case, in case the owner of the flat has been in continuous and uninterrupted possession of the flat for a period of 12 years or more, then, surely, this can add value to the owner’s title. 

However, you may note that different banks have different norms to grant a loan and in case a particular bank may not grant a loan, another bank may be willing to grant a loan for the same flat based on its own assessment of the documents and prescribed requirements. 

Aradhana Bhansali is partner, Rajani Associates.

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