QUESTION & OPINION

– B. Kanaga sabapathy
15.03.2022

Question :

At site, it’s a residential layout. Already many buildings are constructed in this layout. Layout is not approved. A plot owner has approached a bank for mortgage loan based on his vacant plot. As per the sale deed, the land is classified as Nanjai land (Agricultural land). The bank format asks the valuer to note the “Type of property a) Residential b) Commercial c) Industrial”. Can I write it is residential?. Is it proper reply?. In addition, they ask – Adverse effect of bank‘s interest if any on accepting the property as security?. The legal opinion says that the property is marketable and SARFAESI compliant.

Opinion :

1. Whether drawings are approved for the existing houses in the said layout?. Whether drawing is approvable for the proposed construction of a house in the said plot?.

2. If your answer is “yes”, then you may write as “residential”. I don’t think there is anything wrong. Only you will have to decide about the market value to be certified.

3. I don’t think accepting the property as security will adverse the banks’ interest since the legal opinion clearly says that the property is marketable and it is SARFAESI compliant.

4. Before signing the report, apply 4 way test.