Naresh Kumar

Advocate
Mob- 9690039281
Panel Advocate S.B.I, U.G.B & Northern [email protected]
Legal auditor SBI & UGB Dehradun Office : Chamber No. 28. C.J.M Court,
Uttarakhand Compound.

Sr. Particulars Date----------------------

No.
1 Name of the Branch and code No. Uttarakhand Gramin Bank,, CPC Branch Rajpur Road
Dehradun
Code
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 9690039281
email IDs [email protected]
4. Branch letter & date for the conduct of legal audit
(Mandatory)
5. Name of the Borrower & Address. Mr. Anant Vijay Dutt Thapliyal, Mrs. Vandana
Thapliyal
247, Indra Nagar Colony Dehradun 248001
Mr. Alok Vijay Dutt Thapliyal
6/303, Beverly Park, Plot no. 2 Sector 22 Dwarka,
Dwarka sek 6, South West Delhi 11075
6. Constitution self
7. Activity Personal Loan against property p-LPA
8. a. Banking with UGB since New customer
b. if banking any erstwhile subsidiary bank. Since when
and which bank.
9. Banking Arrangement (Sole Banking MBA Consortium) Sole Banking
10. Date of information sheet provided (to be enclosed along -
with the report)
11. Details of sanctions scrutinized (mention the no. & date of UGB
sanction resolution and sanction authority) 23/01/2024
Letter no.2023-24/ADV/M-06
12. Details of credit facilities sanctioned: Facilities Limits (Rs/Crs.)
-PLAP OD = 1.00 Crs.

-Total Limit = 1.00 Crs.

13. Legal Audit Started on: 06-03-2024

14. Legal Audit Completed on: 06-03-2024

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 observations

VS.NO. VALUE STATEMENT AUDITOR’S FOR UGB 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 & Conditions of sanction. Conditions including stipulations NA
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
NA
mentioning 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
YES
guarantor (s) are on record.
e. Draft copies of loan documents and a schedule of applicable NA
charges have been acknowledged by the borrower as per the adoption
of the fair lending practices code.

VS.NO VALUE STATEMENT AUDITOR’S FOR UGB USE

. OBSERVATIO
N
2. LOAN DOCUMENTS APPROPRIATE RESOLUTION:
a. Memorandum & Articles of Association/ Partnership Deed/ Trust NA
Deed/ Trust Deed/ Byelaws. etc (updated copies ). Are on record
and borrowings are as per the permitted level specified in MOA
/AOA.
VS.NO VALUE STATEMENT AUDITOR’S FOR UGB USE
. OBSERVATIO
N
b. Appropriate Board Resolutions of the Borrowing Company/
corporate guarantors for availing the aggregate credit facility NA
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
d. Documents are stamped appropriately, filled in, and are executed NA
by the executants authorized in the board resolution. The common
seal has been affixed and properly witnessed (if so required). NA
e. Compliance certificate Pre Disbursement compliance of terms and
conditions of sanction has been kept with loan documents.
f. Borrowers declaration & confirmation in respect of section 281 of NA
IT Act incorporated in the loan documents.
g. Inclusion of Clause on non- induction of willful Defaulters on the
NA
board of borrowing units.
h. Drafted documents / non-standard documents have been vetted by
NA
bank law office / impaneled advocate.
i. Documents are valid and current Revival letters (supported by
board resolutions ) wherever applicable are obtained balance NA
confirmation is obtained annually.
j. Documents and subsequent revival letters executed were entered in YES
the document execution register with due authentication.

YES

Guarantee Agreements
a. All the Guarantee Agreements are duly stamped and executed by guarantors NA
/ corporate guarantors mentioned in the proposal.
NA
b. Supporting Board Resolution of Corporate Guarantor has been obtained
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 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
NA
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 NO
completed. If so furnish details including date of registration.
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
NO
so furnish details and compliance.

Security interest with CERSAI CREATED ON:

I. Immovable properties by mortgage other than a mortgage by deposit of NO
title deeds
II. Hypothecation of plant & machinery stocks debts including book debts
NA
or receivables whether existing and future
III. Intangible Assets NA

IV. Any under-construction residential or commercial building etc. NA

Vs. No. VALUE STATEMENT AUDITORS FOR UGB

OBSERVATIO USE
N
3 LEGAL OPINION ON PROPERTIES MORTGAGED |(TITLE
INVESTIGATION REPORT)
a. Satisfactory TIRs from two different panels advocates in banks standard YES
format 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 13.042013 should be obtained )
b. Search covers a period of not less than 30 years and it has been
indicated clearly, otherwise the reasons for the same recorded in the YES
TIR
c. Root/ Chain of title have been adequately furnished in the legal opinion
based on parent / subsequent title deeds or other valid documents. YES
d. Electricity connection, water connection, and sales tax registration, etc.
have been verified by the advocate as a due diligence process in respect NA
of mortgage properties for identification of properties.
e. TIRs contains the list of documents to be taken in original / /certificate
copies / Photostat copies for creation of valid mortgage and reasons for
YES
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 without any qualification.
YES
ii. The liability/ Responsibility clause has been incorporated in
the TIR.
iii. Certificate of opinion is clear and without the subjective
YES
clause.
iv. The advocate has obtained certified copies of the title deeds YES
and enclosed them with the TIRs.
v. Certificate of Search of the “Lis- pendens Register’’ carried
out for ascertaining that there are no adverse interests existing YES
on the property to be mortgaged.
g. Applicability of SARFAESI enforcement enforceability agriculture NA
properties 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
i. Opinion on permission from charity commissioner obtained in case of NA
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 etc and laid down instructions are followed (All Furnished by YES
the Bank’s impaneled advocates, where POAs are involved, are to be NA
additionally vetted by the bank’s law officer. For their genuineness and
enforceability)
NA
k. Annexure-E compiled base on TIR and duly signed by the
authorized official’s deficiencies highlighted in TIR if any are properly
addressed.

NA
 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 NA
office of the sub-registrar
Or
ii. A search is made in the records of the office of Sub – Registrar to YES
ascertain the encumbrance on the property.
iii. Whether the mortgage/ Security in favor of the bank is reflected in
YES
the records of sub Registrar or encumbrance certificate
iv. Whether there is any subsequent encumbrance changes assignment
etc in respect of property subsequent to the creation of mortgage in NO
favor of the bank

VS.NO. VALUE STATEMENT AUDITORS FOR UGB

OBSERVATIO USE
N
4 MORTGAGE OF PROPERTIES:
a. Mortgages (both primary and collateral security) of all the properties YES
belonging to the borrower/ guarantors are created as per terms of
sanction,
except where specific approval/ time frame has been permitted to create
mortgage at a later due.
b. Mortgage declaration in respect of no proceeding/ pending/
contemplated under section 281 of IT act incorporated in the NA
memorandum of Entry / Memorandum of entry/mortgage deed
c. Properties mortgaged owned by the company/ corporate guarantor
(duty listed ) are backed by board resolutions of the borrower/ corporate
guarantors as applicable. NA
d. Whether the mortgage by the company is not in accordance with the
provisions of sections 185 and 186 of the companies act 2013.
e. Particulars of land like the location of the land area of land boundaries NA
etc. mentioned in the proposal tally with the title /deeds recital and EM
Confirmation letter/ Board Resolution)
YES
f. In respect of mortgage of “leasehold” properties the absolute owner
(other than lease form govt. state industrial debt. Corporations etc) has
additionally created the mortgage as absolute owner
NA
g. NOC/ Nothing of banks interest (in applicable cases) from leaser (govt.
Agency –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 UGB/other banks/security
NA
trustees, 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 NA
RECORD.
i. When the mortgage covers the exposure of other banks (under MBA or
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 YES
applicable.
k. All documents as per TIR obtained and held on record,
l. Controllers approval obtained in case of creation of EM on the basis of
sales deed executed by POA Gift Deeds and by deposit of a verified
YES
copy of title deeds Confirmations for creation / Extension of Mortgagee
have been received and held as extant guidelines in respect of
YES
noncorporate)
m. Bank Standard EM Register/ Title Deed Register is maintained and NA
proper 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 YES
tally with title deed, EM register, EM confirmations/ Board
NO
Resolution, etc
ii. Demarcation of the property for its identification and possible
enforcement.
iii. Confirmations for creation/ Extension of Mortgage have been
received and held as per extant guidelines,
YES
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.
NA

YES

YES
VS.NO VALUE STATEMENT AUDITOR’S FOR UGB
OBSERVATIO USE
N

5. SCRIPS STIPULATED AS SECURITY OBTAINED:

a. Stipulated ScripS (viz. TDR, NSC, Share Certificates in physical form), NA
with 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 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) NA

VS. VALUE STATEMENT AUDITORS FOR UGB

NO. OBSERVATION USE
6. SECOND CHARGE/ PARI-PASSU CHARGE
a. pari-passu charge second charge wherever stipulated. Have been created by NA
obtaining suitable document s
(sharing of primary and collateral securities between W.C lenders and term
lenders correctly done.)
b. Inter se/ Tripartite agreement is obtained
c. TRA document wherever applicable obtained. NA
NA

VS. VALUE STATEMENT AUDITORS FOR UGB

NO. OBSERVATION USE
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 of
NA
charge in form CHG-1.

VS. VALUE STATEMENT AUDITORS FOR UGB

NO OBSERVATION USE
8. VERIFICATION OF CHARGES FILED FOR REGISTRATION
Detailed search reports for all the charges filed have been obtained at the prescribed NA
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. VALUE STATEMENT AUDITORS FOR UGB

NO OBSERVATION USE
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 NA
(ii) Audited Balance sheet along with letter form company secretary that
NA
no such dues are outstanding and
(iii) Certificate form statutory auditors of the company that no such dues are
NA
pending

10. Legal Audits guidance to the branch for rectification of deficiencies observe remedial measures need
to be taken up
1. As per bank circular seal of Adv. S K Sehgal should be obtained on TIR
2. As per bank circular CERSAI should be obtained.
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. 15-09-2023 Annexure-X 1.00 crore Found in order
(ARRANGEMENT LETTER)
Loan against equitable mortgage
immovable property
2. 15-09-2023 SME-5 2,52,80,000 crore Found in order
(Memorandum for recording
creation of mortgage by deposit of
title deeds)

CERTIFICATE ON MORTGAGE DOCUMENTS

I/We have examined the original title deed (s) of following securities

Sr Description Schedule of property Name of the Remarks

No. Mortgagor
1. Sale deed dated An Immovable Property bearing no. 247, Indira Nagar Mr. Anant Found in order
187/2019 colony, Phase-1, Dehradun measuring area 465.80 sq. Vijay Thapliyal
Sr no. 2976 mts. Along with construction standing thereon. and Mrs.
Bounded and butted under:- Vandana
East :- Road, side measuring 27.40. Mts. Thapliyal
West :- Property/plot no. 246, side measuring 27.40 mts.
North :- Property/plot no. 248, side measuring 17 mts.
South :- Road, side measuring 17Mts.
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

DATE: 06-03-2024 SEAL & SIGNATURES OF THE LEGAL

AUDITOR