I bought a property from Andhra Bank’s Maharanipeta branch in Visakhapatnam. The sale certificate stated the property was free of any known encumbrances. The auction notice mentioned a two-storey building for sale. However, I discovered the building lacked plan approval and had property tax arrears exceeding one lakh rupees, including penalties. I paid one lakh thirty thousand rupees for the Building Penalisation Scheme to regularize the plan and cleared the one lakh rupee property tax arrears, holding all the receipts. Is Andhra Bank obligated to reimburse me for these expenses?
Best Answer
Under Indian law, Andhra Bank is likely obligated to reimburse you for the expenses incurred in regularizing the building plan and clearing the property tax arrears. This is because the sale certificate stated the property was free of encumbrances, while it actually had a lack of plan approval and tax arrears, which constitutes a breach of this representation.
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