Loss of original title documents
shown to market to customers. With Rera, developers have to announcethecompletiondateat launch, so they don’t wanttorisk launching big townships in one go. Theylaunchonlyaportionto ensure that they have more control ontheconstructionactivity.” Unlike before, most townships today focus on affordable housing. Thenewcropisalsotryingto give them adistinct theme, making them‘smart’andtechnologyenabled, alongwithconceptslike student and senior housing that are being introduced.
Marking its entry into mid-income housing, Embassy Group recently launched the first of the five phases of its 283-acre township in north Bengaluru. The apartments in this phase (12 acres) are being marketed as smart homes and Embassy has tied up with Amazon to integrate Amazon Echo devices. In the later phases, it may introduce student housing and senior living. “The high investment needed upfront for land acquisition, the lengthy gestation phase of development and the longterm commitment of funds have created an entry barrier for integrated townships, which only large developers can scale,” said Reeza Sebastian, Embassy senior vice-president, residential business. “Since acquiring land is a big hurdle and there are stringent rules on how you can roll out products, it may prove a challenge to be able to enter the space.” Shapoorji Pallonji Real Estate is in the process of aggregating 1,000 acres between Mumbai and Pune to build a massive township, which is currently being conceptualized.
CEO Venkatesh Gopalkrishnan says projects like these need to have a primary hook, a theme. “Our project will be built in the next 8-10 years, in phases around a theme,” he said. “Master-planningof townshipsneedtobewellthought, with right positioning andproduct mix. If youdoit well, you build a lot of value.”
Mohit Malhotra, managing director and CEO, Godrej Properties Ltd, says that while the firm is bullish on townships, they are complex to execute and need “financial and execution capabilities and organizational support’ that smaller players will struggle to meet. Godrej has been collaborating with smaller developers to breathe new life into projects that the latter couldn’t develop. Generally, mortgage is created over an immovable property to secure loan advanced by a lender/ bank/ financial institution to a person/ entity/ borrower. UndertheprovisionsofTransfer of Property Act, 1882, mortgage hasbeendefinedastheprocessby which interest in a specific immovable property is transferred to the lender as a security for the refund of the money advanced or to be advanced to it, by way of loan to a borrower.
The person borrowing and transferring the interest in a immovablepropertyinfavourof thelenderiscalledthemortgagor and the lender can be a person/ anyentity/bank/ financial institution in whose favour the mortgage is created is called the mortgagee. The money which is lent against the security of immovable property in favour of mortgagoriscalled themortgagemoney.
Mortgage over immovable property canbecreated in different ways vis a vis simple mortgage, mortgage by conditional sale, unsufructuary mortgage, english mortgage, mortgage by deposit of title-deeds andanomalous mortgage. The method whichisgenerallyadoptedbythe financial institutions/ banks in India is mortgage by way of deposit of title deedswhichisalso known as equitable mortgage.
It is the easiest formofthecreation of mortgage wherein the original title documents/ deedsof the property are deposited with the bank as security for the loan advanced by it to the borrower.
In the recent past, there have been instances wherein the borrower/ mortgagorwasinformed that theoriginal title deedsdeposited by him/ her in the bank againsttheloanadvancedtohim, has been lost or misplaced. Now, the question arises as to what happens when the bank loses or misplaces the title deed(s) of the property and fails to return it to the borrower, after the repayment of loan.
The mortgager/ borrower in this event could even substantially lose the marketvalueofthe immovable property as the subsequent purchaser would be skepticalofbuyinganimmovable property without the original title deed/ documentoftheproperty.
The banks/ financial institutions have a duty to take proper care of title deeds/documents of immovable property deposited with it because any loss of the original title documentsreduces the market value of the property substantially and no further equitable mortgagecanbeeasily created on such properties. The mortgagor has to have absolute clarity on whether the title deed submittedbyhimhasbeenlostor misplacedbythebank, asthereis a fine distinction between the two. The word ‘misplaced’ conveys the meaning that the document is still in possession of the bank but has been wrongly placed and may be recovered later. However, the word ‘lost’ conveys the meaning that the documents are no longer in possession of the bank.
Themortgagorafterreceiving a communication from the bank that the original title deed is lost, should file a police complaint stating the loss of the document. The mortgagor should also consider getting theloss publishedin the leading newspaper(newspapers, preferablyinanEnglishand a vernacular newspaper). The aggrieved mortgagor may also approach the banking ombudsman or consumer forum having jurisdiction to seek redressal. The bank usually compensates its customersormortgagorasper their compensatorypolicyforthe loss of original document.
Midsized firms have tried selling off land bigger players