Mumbai: US-Based Family Triumphs in 22-Year Legal Battle Over Fraudulent Property Documents

Mumbai: A US-based family has finally secured a significant legal victory after a 22-year battle over fraudulent property documents. The city civil court has declared two power of attorney (POA) documents, dated January 11, 1996, and December 24, 1999, as void. The court accepted the family's claim that these documents were forged and used illegally to secure a bank credit facility.

The court's decision comes after a lengthy legal battle that began in 2003 when Homi Sanjana and his wife Piroja filed a suit against Vasai resident Kersi Viraf Mehta, Union Bank of India, and two firms, Anup Impex and Challenger Imports, along with their proprietors, Nitesh Sadarangani and Ashok Sadarangani. The suit sought to declare the POAs void and protect the family's ancestral properties.

During the proceedings, Homi and Piroja Sanjana passed away, and their two sons continued the legal battle as legal heirs. The plaintiffs, members of the Sanjana family, are the lawful owners of ancestral lands in Kandivli and other areas in Mumbai. They claimed that no authority was ever granted to Mehta, except for limited authorizations within the family. The family alleged that Mehta used the POAs to execute lease deeds and a rectification deed for their properties in favor of the Sadaranganis.

The properties were allegedly leased for 99 years for a lump sum amount, without any monthly rent, and the survey numbers and areas were altered through rectification. Based on these deeds, the bank extended credit facilities to the borrowers, who later settled their dues while the suit was pending. The plaintiffs argued that although the lease deeds recorded delivery of possession, no possession was ever handed over, and they continued to pay taxes and statutory dues.

The plaintiffs provided evidence that they were in the US on the dates the documents were purportedly signed, a claim supported by their passports. The suit proceeded against the bank, and the plaintiffs did not press the suit against the other defendants before the civil court. During the hearing, the bank resisted the claim of the plaintiffs, arguing that the suit was false, mala fide, and filed to obstruct recovery proceedings initiated before the Debt Recovery Tribunal against the borrower defendants.

The court noted that the bank did not produce or prove the original mortgage papers, any memorandum evidencing the deposit of title deeds, proof of deposit, or any record showing verification of title, authority, and due diligence in accordance with the law. The court accepted the arguments of the plaintiffs and held that the POAs were forged and fabricated, and all derivative transactions were carried out without authority.

This ruling is a significant victory for the Sanjana family, who have been fighting to protect their ancestral properties from fraudulent claims. The decision sets a precedent for similar cases where forged documents are used to secure financial benefits, highlighting the importance of thorough due diligence and verification in real estate transactions.