INTRALEGAL®
Advocates
&Consultants
Our ref: PNB/Legal opinion –Indus CHS- 07/2024 Date: 17.10.2024
To,
Punjab National Bank,
Credit department,
CO Mumbai City
Sir,
In reply to your email dt.17.10.24, seeking legal Opinion on,
1. Validity of 30 years of lease executed by the Govt of Maharashtra for one
project for sanction of Home Loan.
2. Please inform whether registered mortgage can be created on flats built
on land allotted by Govt of Maharashtra on lease for 30 years.
3. What should be tenor of the loan
Under law there is a concept of dual ownership, accordingly land can be owned
by an entity and flat constructed upon it can be owned by another. Expiry of
lease or transfer of the land rights will not adversely affect the right of the flat
owner unless it is specifically mentioned in the lease deed, which is most
unlikely. Here we understand that the loan shall be sanctioned to the individual
flat purchasers on the security of the mortgage of the flat. Bank needs to obtain
NOC from the Government of Maharashtra for the creation of mortgage unless
lease provides blanket permission for creation of mortgage in favour of banks/
financial institutions
With respect to your query no.1, validity of the lease for 30 years will not
adversely affect the mortgage created with the consent of Government of
Maharashtra
With respect to your query no.2, Registered mortgage can be created on the flat
With respect to your query no.3, if the mortgage is with the consent of the
Government of Maharashtra, bank need not worry about the tenure of the
mortgage. Notwithstanding bank after the mortgage shall inform the
Government of Maharashtra regarding the creation of mortgage to mark banks
lien on the flats.
Regards
No.2, Lalani Building, 1st Floor, Tel. : +91 22 49671793 intralegal@intralegal.in
83/85, Janmbhoomi Marg, +91 22 2283 2333 intralegal8@gmail.com
Fort, Mumbai-400 001
INTRALEGAL®
Advocates
&Consultants
INTRALEGAL,
Advocates & Consultants
No.2, Lalani Building, 1st Floor, Tel. : +91 22 49671793 intralegal@intralegal.in
83/85, Janmbhoomi Marg, +91 22 2283 2333 intralegal8@gmail.com
Fort, Mumbai-400 001
