HO: Retail Banking Division,

4th Floor, East Wing,

Plot No 4, Dwarka Sector 10, New Delhi - 110075
e-mail :rbd@pnb.co.in

RBD(A) CIRCULAR No. 18/2018

Date: 05.03.2018

GIST:

To All Offices Housing Finance Sche e for Public –

Physical Verification of Security

RETAIL BANKING DIVISION (ADVANCES) CIR NO. 18/2018

HOUSING FINANCE SCHEME FOR PUBLIC

PHYSICAL VERIFICATION OF SECURITY

The detailed guidelines on physical verification of property mortgaged to the bank

as Primary or Collateral Security are laid down in the consolidated circular on Housing
Finance Scheme to Public {RBD (A) 63/2017 dated 10.08.2017 at Para No. 19(q)}.
Further, keeping in view various aspects a comprehensive checklist has also been
designed and circulated vide RBD (A) circular No. 15/2018 dated 19.02.2018.

2. Instances of frauds have been is observed

brought to our notice wherein it that the
following reasons have led to the occurrence
of fraud:

2.1. Branches have not done proper pre-sanction appraisal as well as post-
sanction follow-up.
2.2 Non adherence of bank guidelines on investigation of title deed and search
report & Mortgage of immovable property by the field.
2.3. The lapse on part of individual physical verification of the property.

3. Further, it has been desired that following aspects should also be

incorporated in the guidelines with respect to spot verification of property.

3.1 The property must be re-visited by a bank official within a maximum of 10

days after disbursement of loan. Report of visit is to be kept in the respective loan
file.
3.2 Post disbursement visit must be made by an official different from the one who
made pre-sanction visit.

3.3 Spot verification report should contain names of two persons, with whom the visit
official met, and their telephone numbers and addresses, while making local enquiry
about ownership of the property.

4. In view of the above and to obviate recurrence of such instances of Fraud that
culminate to loss to the bank, the guidelines on spot verification are reiterated as under:

4.1 Recommending/ sanctioning authority to invariably visit the location of the actual
property and place a report of visit with date;
4.2 The property must be re-visited by a bank official different from the one who made
pre-sanction visit within a maximum of 10 days after disbursement of loan.

4.3 Visit report as per format annexed is to be kept in the respective loan file for both
the stages i.e. Pre-disbursement and Post-disbursement.

4.4 To retain a copy of Photograph of Immovable Property;

4.5 Carryout evaluation of property by interacting with local people;
4.6 Endeavour to confirm the genuineness of Immovable Property by asking in the
neighborhoods;
4.7 Spot verification report should contain names of two persons, with whom the
visiting official met, and their telephone numbers and addresses, while making
local enquiry about ownership of the property.

4.8 Also talking to the occupants of property to confirm that the property has not
changed hands before being offered to the Bank or there are deals underway on
the property, which may subsequently lead to litigation, resulting in dilution in
Bank’s securities.
5. All concerned are requested to go through the guidelines carefully and ensure
meticulous compliance of the same.

(Naveen Kumar)
General Manager

Encl: As above
Index: HOUSING FINANCE SCHEME FOR PUBLIC
 RBD (A) Circular No. 18/2018
Annexure
PROFORMA FOR PHYSICAL VERIFICATION OF PROPERTY
PRE-SANCTION/POST-SANCTION

1. Date of physical verification of the property :

2. Name of the owner(s) of the property :

3. If the property is under joint ownership/

Co-ownership, share of each such :
Owner. Are the shares undivided?

4. Brief description of the property i.e. location, street,

ward No., Flat/Plot No., dimensions :

- Is the property situated in residential/

commercial/mixed area/Industrial area :
- Whether the construction plan is approved
by Municipal Authority/Corporation, etc. :

5. Is it freehold or leasehold land? :

6. a)Is the building owner – occupied/tenanted/both:

b)If partly owner-occupied, specify portion and

extent of area under owner – occupation :

7. Is any dispute of landlord with tenant and/or

any statutory body in regard to property? :

8. Name of the person with whom the visiting Official met while making local
enquiry of ownership of property:

Particulars I II
Name:

Mobile Number

Address:

_
DATE: SIGNATURE & NAME OF
PLACE: VISITING OFFICIAL