Panel Advocate S.B.
I, Mob- 9690039281
U.G.B & Northern Office : Chamber No. 28
Railways C.J.M, Court
Legal auditor SBI & UGB Compound, District Court, Dehra
Sr. Particulars Date----------------------
No.
1 Name of the Branch and code No. State Bank of India, RBO-1, (Dehradun) AO
Dehradun
Code 14953
2. (a) Name of the Legal Auditor Naresh Kumar Advocate
(b) Name of the legal Firm Chamber No. 28. Behind CJM court compound
Dehradun
3. Contact no. of legal Auditor / legal audit firm and their email 9690039281
IDs [email protected]
4. Branch letter & date for the conduct of legal audit (Mandatory) -
5. Name of the Borrower & Address. Mr. Kapil Arora, 48/5, Teg Bahadur Road Lane 4
Dehradun, Uttarakhand, 248001
Mrs. Neetu Arora,Vill- Malaon, Rudraprayag,
Uttarakhand, 246442
& Mrs. Vinod Arora, H.no. 48/5, Teg Bahadur
Road Lane 4 Dehradun, Uttarakhand, 248001
6. Constitution Personal
7. Activity Takeover Of Home Loans From other
Banks/Hfcs/Fis of remaining construction work.
8. a. Banking with SBI since
b. if banking any erstwhile subsidiary bank. Since when and
which bank.
9. Banking Arrangement (Sole Banking MBA Consortium) Sole Bankings
10. Date of information sheet provided (to be enclosed along with -
the report)
11. Details of sanctions scrutinized (mention the Date & no. of SBI
sanction resolution and sanction authority) 29-10-2024
ZCC_006762_2024-25_069-0286
12. Details of credit facilities sanctioned: Facilities Limits (Rs/Crs.)
- Home Loan - HL = 7.34 cr.
For Individuals
-Total Limit = 7.34 cr.
13. Legal Audit Started on: 25-01-2025
14. Legal Audit Completed on: 25-01-2025
15. Critical Risks/Deficiencies observed (Bullet Points) YES
Minor defiance regarding mention of date & Place of
execution of Documents observed at the time of legal Audit
was completed immediately at the time of legal Audit.
B. Value Statement Wise Observation
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
1. ARRANGEMENT LETTER
A. Arrangement letter exchanged immediately on receipt of sanction YES
resolution undue delay not observed. An arrangement letter is exchanged
even in case of renewal and also for the continuation of the credit facilities at
the existing level
B. Arrangement letter issued to the borrower guarantors covers all Terms & YES
Conditions of sanction. Conditions including stipulations and observations
of sanctioning authority incorporated the standard covenants (Mandatory
Covenants and Mandatory Negative Covenants, Financial covenants).
Consent for disclosure to CIBIL & cancel ability clause, re-set clause for
TL, right to recompense clause in respect of restructuring, etc. Details of
immovable properties taken as security have been recorded as per the
security column of the proposal.
C. Disclosure of Nationality of Borrower and guarantor clause mentioning YES
losing of the citizenship of India or acquiring the citizenship of any other
country and the same has to be advised in writing to the bank. Immediately
has been incorporated in the Arrangement letter.
D. Arrangement letters duly accepted by both the borrower and guarantor (s) YES
are on record.
E. Draft copies of loan documents and a schedule of applicable charges have YES
been acknowledged by the borrower as per the adoption of the fair lending
practices code.
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
2. LOAN DOCUMENTS APPROPRIATE RESOLUTION:
A. Memorandum & Articles of Association/ Partnership Deed/ Trust Deed/ NA
Trust Deed/ Byelaws. etc (updated copies ). Are on record and borrowings
are as per the permitted level specified in MOA /AOA.
B. Appropriate Board Resolutions of the Borrowing Company/ corporate NA
guarantors for availing the aggregate credit facility sanctioned and accepting
the terms & conditions thereof including security creation & documents
execution etc. are on record.
C. Appropriate documents are obtained including scheme-specific documents YES
D. Documents are stamped appropriately, filled in, and are executed by the NA
executants authorized in the board resolution. The common seal has been
affixed and properly witnessed (if so required)
E. Compliance certificate Pre Disbursement compliance of terms and YES
conditions of sanction has been kept with loan documents.
F. Borrower's declaration & confirmation in respect of section 281 of IT Act YES
incorporated in the loan documents.
G. Inclusion of Clause on non- induction of willful Defaulters on the board of NA
borrowing units.
H. Drafted documents / non-standard documents have been vetted by bank law NA
office / impaneled advocate.
I. Documents are valid and current Revival letters (supported by board NA
resolutions ) wherever applicable are obtained and balance confirmation is
obtained annually.
J. Documents and subsequent revival letters executed were entered in the NA
document execution register with due authentication.
Guarantee Agreements
A. All the Guarantee Agreements are duly stamped and executed by guarantors NA
/ corporate guarantors mentioned in the proposal.
B. Supporting Board Resolution of Corporate Guarantor has been obtained. NA
C. Whether the guarantee by the company is not in contravention of the NA
provisions of sections 185 and 186 of the companies Act 2013
D. Full particulars of the Guarantors like names of guarantors, along with NA
particulars viz. s/o w/o complete postal address phone nos, mobile nos, e-mail
id, passport details, etc. are recorded in the guarantee Agreements.
E. Undertaking by the Borrower about non-payment of commission and NA
declaration from guarantors for not demanding commission for the guarantee
extended are obtained.
F. In case of consortium documents where the bank is the member, copies of NA
documents forwarded by consortium leader with the covering letter held on
record.
G. Periodic possession certificate in respect of security documents executed NA
outside the home branch / held on record.
Stamp duty Requirement
H. Whether all loan documents and guarantee documents obtained from YES
borrower/ guarantor/ etc are properly stamped in accordance with applicable
stamp laws if there is any deficiency, provide the details.
Registration Requirement
a. Whether the registration requirement of security interest with CERSAI was YES,
completed. If so, furnish details including date of registration. 03-03-2024
Registration with ROA, sub Registrar, or any other Authority is required if so
furnish details and compliance
b. Whether the requirement of registration with ROC, if required completed. NA
c. Registration with ROA, sub Registrar, or any other Authority is required if YES
so furnish details and compliance
Security interest with CERSAI CREATED ON:
I. Immovable properties by mortgage other than a mortgage by deposit of title YES
deeds.
II. Hypothecation of plant & machinery stocks debts including book debts or NA
receivables whether existing and future
III. Intangible Assets NA
IV. Any under-construction residential or commercial building etc. YES
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI
OBSERVATION USE
3. LEGAL OPINION ON PROPERTIES MORTGAGED |(TITLE
INVESTIGATION REPORT)
A. Satisfactory TIRs from two different panels advocates in banks standard format YES
are obtained and held on record with required documents stated in the master
circular on TIR dated 13.04.2013 (At least one TIR as per the prescribed format
drawn in master Circular dated 13.04.2013 should be obtained )
B. Search covers a period of not less than 30 years and it has been indicated YES
clearly, otherwise the reasons for the same recorded in the TIR
C. Root/ Chain of title have been adequately furnished in the legal opinion based YES
on parent / subsequent title deeds or other valid documents.
D. Electricity connection, water connection, and sales tax registration, etc. have NA
been verified by the advocate as a due diligence process in respect of mortgage
properties for identification of properties.
E. TIRs contains the list of documents to be taken in original / /certificate copies / YES
Photostat copies for creation of valid mortgage and reasons for non-availability of
original title deeds and the mediatory measures for enforceability of the securities.
F. TIRs contains
i. The certificate of the genuineness of title deeds related to the properties and are YES
without any qualification.
ii. The liability/ Responsibility clause has been incorporated in the TIR. YES
iii. Certificate of opinion is clear and without the subjective clause. YES
iv. The advocate has obtained certified copies of the title deeds and enclosed them YES
with the TIRs.
v. Certificate of Search of the “Lis- pendens Register’’ carried out for ascertaining NA
that there are no adverse interests existing on the property to be mortgaged.
G. Applicability of SARFAESI enforcement enforceability agriculture properties NA
taken as security for non-agricultural loans clearly stated in the TIR.
H. Applicability of Section 281 of Income Tax Act and its impact recorded NA
I. Opinion on permission from charity commissioner obtained in case of mortgage
created / to be created for all the assets of a charitable trust
J. Legal opinion / TIR Validated the documents executed through POA Gift deed NA
etc and laid down instructions are followed (All Furnished by the Bank’s
impaneled advocates, where POAs are involved, are to be additionally vetted by
the bank’s law officer. For their genuineness and enforceability)
K. Annexure-E compiled based on TIR and duly signed by the authorized NA
official’s deficiencies highlighted in TIR if any are properly addressed.
Other Areas to be examined.
If the title deeds are in a vernacular language brief particulars of the title deeds in NA
English signed by the bank’s advocates/ solicitors should be obtained
from Scrutiny of Encumbrance.
i. Whether an up-to-date encumbrance certificate is obtained from the office of YES
the sub-registrar
Or
ii. Whether there is any subsequent encumbrance changes assignment etc in NA
respect of property subsequent to the creation of mortgage in favor of the bank
iii. A search is made in the records of the office of Sub – Registrar to ascertain the YES
encumbrance on the property.
iv. Whether the mortgage/ Security in favor of the bank is reflected in the records NA
of sub Registrar or encumbrance certificate
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI
OBSERVATION USE
4. MORTGAGE OF PROPERTIES:
A. Mortgages (both primary and collateral security) of all the properties belonging YES
to the borrower/ guarantors are created as per terms of sanction, except where
specific approval/ time frame has been permitted to create a mortgage at a later
date.
B. Mortgage declaration in respect of no proceeding/ pending/ contemplated under NA
section 281 of IT act incorporated in the memorandum of Entry / Memorandum of
entry/mortgage deed
C. Properties mortgaged owned by the company/ corporate guarantor (duty listed ) NA
are backed by board resolutions of the borrower/ corporate guarantors as
applicable.
D. Whether the mortgage by the company is not in accordance with the provisions NA
of sections 185 and 186 of the companies act 2013.
E. Particulars of land like the location of the land area of land boundaries etc. YES
mentioned in the proposal tally with the title /deeds recital and EM Confirmation
letter/ Board Resolution)
F. In respect of mortgage of “leasehold” properties the absolute owner (other than NA
lease form govt. state industrial debt. Corporations etc) has additionally created the
mortgage as absolute owner
G. NOC/ Nothing of banks interest (in applicable cases) from leaser (govt. Agency NA
–e.g.KSIIDC, MIDC, APIIC / Co-operative societies, etc) have been obtained and
are held on record as per terms of the lease.
H. Wherever EM is created at other branches of SBI/other banks/security trustees, NA
copies of recital/memorandum of entry (duly certified ) ARE HELD ON RECORD
AS PER EXTANT GUIDELINES PERIODICAL CONFIRMATION (AT THE
TIME OF RENEWAL) FROM OTHER BANKS / SECURITY TRUSTEES
OBTAINED AND KEPT ON RECORD.
I. When the mortgage covers the exposure of other banks (under MBA or YES
consortium) aggregate exposure covered by the mortgage as well as nature and
rank of charge (first /second ) are suitably recorded in the recital MOE/ EM
Register.
J. Registration of equitable Mortgages with ROA carried out, If applicable. YES
K. All documents as per TIR obtained and held on record, YES
L. Controllers approval obtained in case of creation of EM on the basis of sales NA
deed executed by POA Gift Deeds and by deposit of a verified copy of title deeds
Confirmations for creation / Extension of Mortgagee have been received and held
as extant guidelines in respect of noncorporate)
M. Bank Standard EM Register/ Title Deed Register is maintained and proper YES
recordings are carried out.
N. Registration of charge created over immovable properties with central electronic
registry (CERSAI) evidenced. (Cross check with the copy of screenshot of
registration the CERSAI)
Other areas in relation to the mortgage to be examined.
i. Area of land, Boundary location mentioned in the proposal tally with title deed, YES
EM register, EM confirmations/ Board Resolution, etc
ii. Demarcation of the property for its identification and possible enforcement. YES
iii. Confirmations for creation/ Extension of Mortgage have been received and held YES
as per extant guidelines,
iv. Memorandum of Deposit of Title deeds is duly stamped if applicable. Stamping
and registration requirements
i. Whether proper stamp duty has been paid in respect of YES
mortgage/ Equitable Mortgage.
ii. Whether the requirement of registration of the NA
mortgage. with a sub-registrar or any other authority as
applicable has been duly completed.
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
5. SCRIPS STIPULATED AS SECURITY OBTAINED:
A. Stipulated ScripS (viz. TDR, NSC, Share Certificates in physical form), with NA
appropriate security documents ( including security delivery letter have been
obtained and records are maintained as per extant instructions with lien marked
wherever necessary and kept securely as per the instructions Board resolution to
the company is obtained in case securities of pvt ltd / public ltd company are kept
as collateral security.
B. Shares compliance of the provisions of section 19(2) of BR act, 1949 ensured. if NA
scrips are in demat form certificate from the depository participant concerned
obtained pledge master report held on record (legal auditor to comment on the
holding of such securities as stipulated in the sanctioned proposal)
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
6. SECOND CHARGE/ PARI-PASSU CHARGE
A. pari-passu charge second charge wherever stipulated. Have been created by NA
obtaining suitable documents. (sharing of primary and collateral securities between
W.C lenders and term lenders correctly done.)
B. Inter se/ Tripartite agreement is obtained NA
C. TRA document wherever applicable obtained. NA
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
7. FILING OF CHARGES WITH APPROPRIATE AUTHORITIES
A. Filing of charge with ROC in respect of Corporate Borrower and corporate NA
guarantor evidenced through /CHG-1 and GAR-7 within the stipulated period viz.
within 30 days 31-60 days and beyond 60 days in applicable cased charges have
been filed with other authorities viz. RTP (for vehicles) DGCA ( for aircraft),
Director General of shipping /Maritime Authority (for ship), etc.
B. Details in CHG-1, contains the details stated under the security column of the NA
proposal
C. Second / pari- passu charge have been correctly mentioned in CHG-1 NA
D. Charges created by pledge are registered under the option other under the type NA
of charge in form CHG-1
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
8. VERIFICATION OF CHARGES FILED FOR REGISTRATION
Detailed search reports for all the charges filed have been obtained at the NA
prescribed periodicity Assets of the Borrower & corporate Guarantor charged rot
the bank are properly reflected in the search report (Date of ROC search report
verified to be mentioned)
VS.NO. VALUE STATEMENT AUDITOR’S FOR SBI USE
OBSERVATION
9. SATISFACTION OF REDUNDANT CHARGES
Prior redundant charges (charges for which loans have already been liquidated) if NA
any of other lenders have been satisfied and such charges are not reflected in the
ROC search report wherever applicable
(In case of non-filing for the satisfaction of redundant charges legal auditors to
record their comments based on the following parameters
i. Statement of Account /No Dues Certificate form the lender
ii. Audited Balance sheet along with letter form company secretary that no such NA
dues are outstanding and
iii. Certificate form statutory auditors of the company that no such dues are pending NA
10. Legal Audits guidance to the branch for rectification of deficiencies observe remedial measures
need to be taken up
NILL
LIST OF LOAN DOCUMENTS SCRUTINISED (to be tallied with Credit facilities sanctioned as under item 12 (page-2) of
Executive summary)
Sr. No Date of document Description of loan document Loan amount Remarks
1. 30-10-2024 (LETTER OF Arrangement) 7.34 crore Found in order
2. 30-10-2024 Agreement to mortgage 7.34 crore Found in order
3. 30-10-2024 Memorandum of Loan Agreement for home 7.34 crore Found in order
loan Granted to public
4. 30-10-2024 ANNEXURE-1 7.34 crore Found in order
Addendum to Arrangement Letter
CERTIFICATE ON MORTGAGE DOCUMENTS
I/We have examined the original title deed (s) of following securities
Sr No. Description Schedule of property Name of the Remarks
Mortgagor
1. Sale Deed Dated All that Residential open land bearing part of Mr. Kapil Arora Found in order
08-07-2022 Sr. no. Khasra No. 312 min. having land measuring area
6016 752.48 sq. mtrs. Situated at Mauza Uttari Gaon,
Pargana Central Doon, Dehradun.
Bounded and Butted Under:-
East:- Land of Smt. Shivya Agarwal, S.M. 80
Ft.
West:- Land of Smt. Asha Mitra S.M. 87 Ft.
North:- Land of Others, S.M. 96 Ft.
South:- 25 Ft. Wide Road, S.M 96 Ft.
1. Offered as security by way of Equitable Mortgage and that the documents of title available with the bank are valid
evidence of right title and interest of the mortgagor and that the said registered Equitable Mortgage Created in favor
of the bank satisfies the legal and procedural requirements of creation of Equitable Mortgage..
2. There are no prior mortgage/ Charges/ Encumbrances whatsoever as could be seen from the encumbrance
certificate for the period from 01-01-1989 to 2020 up to date pertaining to THE Immovable properties covered by
the above-said title deeds
3. In case of a Second /subsequent charge in favor of the bank, there are no other mortgages/charges other than
already stated in the loan documents and agreed to by the Mortgagor and the Bank
4. Details of Minor (s) and his/ their interest in the property are to the extent of ---------- Nil.
5. (i) We certify that all mortgagors of properties have an absolutely clear and marketable title
(ii) I confirm having made scrutiny of the records of sub-Registrar/Registrar/Land/Revenue Authorities and
thorough audit of the documents/ records available with the bank: I do not find anything adverse which
would prevent the bank from enforcing the mortgage created in the account.
(iii.) I certify that the title deeds relating to properties mentioned above deposited with the bank are genuine valid
and enforceable mortgage has been created the mortgage/ security interest can be enforced by the bank in case of
need. I have verified and scrutinized all relevant documents records and register etc to prepare this legal audit report
with full knowledge that any lapse or negligence on my part may cause loss to the bank and I may be held liable/
responsible for any such negligence or lapse on my part or on the part of my agent in preparation and submission of
this legal audit report.
PLACE: DEHRADUN SEAL & SIGNATURES OF THE
DATE: 25-01-2025 LEGAL AUDITOR
LEGAL AUDIT BILL
BILL NO.UGB 04/25 DATED: 25/01/25
KAPIL ARORA, NEETU ARORA & VINOD ARORA
SI.NO. NATURE OF JOB FEE (RS.)
1. Professional fee for legal auditors for verifying and scrutinizing the loan documents in 3000.00
the account.
2. Scrutiny of title documents/mortgage documents and re-verification of the title deed of 1875.00
the property (TIR) with concerned authorities/office for confirming the genuineness of
the mortgage documents/ Title Deed. (75% of the fee applicable in the cicle for
submission of 2 TIR).
3. Misc. expenses for travel and other expenses 500.00
4. Clerical and Typing expenses 800.00
5. With respect to bank branches situated in the state Capital (HC Center), Dehradun. 750.00
Total Amount 6,925.00
Total Amount in words: Six Thousand Nine Hundred Twenty Five Only
(UGB A/C No. 76018623727)
Enclosed: Signature of legal Auditor
1. Legal Auditor report in Triplicate
