How To Buy Repossessed / Foreclosed Flat through Bank Auction in Navi Mumbai

Everything you wanted to know about purchasing repossessed / Bank auction flats in Navi Mumbai.

Published Tagged , ,
Bank Auction notice
Bank Auction Notice


One often hears of great bargains offered by banks in repossessed/foreclosed properties. Although the offers are tempting, since they are offered at a 30-40% discount from market rates, one has to be careful while buying such properties/flats as many, if not all, have glaring shortcomings in their legal status. Many lack the proper building permissions and others lack permissions which are specific to Navi Mumbai.

Navi Mumbai was formed by acquiring land in the 1970’s by CIDCO, which was designated as the planning authority for Navi Mumbai. Villagers were compensated as per the land acquisition act and given adequate compensation along with land which they could sell in the open market to builders or build on it themselves. The scheme for such construction was called Sade Barah Takka (12.5%) GES (Gaothan Expansion Scheme).

Since CIDCO is the planning authority, it framed rules under Navi Mumbai Disposal of Lands Act and Navi Mumbai DIsposal of Land Rules. These rules also incorporated conditions for sale of flats/Shops/Land which defaulted on mortgage/loans taken from banks.


One should make sure that the following documents are in place before purchasing the Flat/Shop/Land:-

  • Building permissions from CIDCO/NMMC (CC, OC, Sanctioned Plans)
  • Society Formation/Registration Documents
  • CIDCO Conveyance Documents of the Society
  • CIDCO approved List of Members of the Society (This list is approved by CIDCO on its letterhead before the Conveyance application of Society is Processed by CIDCO.
  • CIDCO Final Order in Favor of the Society
  • Mortgage NOC obtained by defaulting owner from CIDCO
  • NOC from society allowing the bank to repossess and sell the flat
  • District Magistrate Court (Collector) Order for foreclosing the loan and repossessing the flat/shop issued under SARFAESI ACT and Rules
  • NOC from CIDCO for selling the flats via Auction (To be obtained by the Bank from CIDCO)

Once these documents are available, one can bid in the online auction of the bank.

Our experience shows that most banks do not display any of these documents online and they do not maintain any of the documents at the site of the flat/building. They lure buyers to their office on the pretext of showing documents. They will not allow you to take copies of the documents and will tell you to find out CIDCO approvals on your own.

This only means one thing : That the documents are not complete. Almost 100% of the banks do not have the CIDCO NOC for selling the flat. They lure buyers with false and fake promises and ‘as is-where is’ condition.
And most of the people who do not have any knowledge of the process, end up buying a problem property and repent later.

On winning the bid, the bank issues a certificate of sale (a letter on the letterhead of the bank stating that you have won the bid and paid the money)

Once the certificate of sale is issued, it is then registered along with a sale agreement at the Registration office of the Revenue Department. Stamp Duty on the Auction Price or the Ready Reckoner Rate (whichever in higher) has to be paid. Registration charges also have to be paid.

After that the winning bidder has to approach CIDCO with a full set of documents and affidavits and NOCs and obtain the CIDCO NOC for the sale. If the payment is without a loan or in one shot, then CIDCO will issue a Final order directly, or else one will have to obtain a CIDCO NOC for availing a bank loan after part payment, and then apply for a Final order after making the balance payment via Loan Disbursal. Final order will have to be obtained from CIDCO after execution and registration of the Sale Deed.

In a new development, PNB bank sold a property worth crores via Bank Auction by making the buyer sign a ‘as-is-where-is’ clause. The High Court has ruled that all such clauses are illegal…and if there is any legal title issue pre-existing, the bank cannot shrug its responsibility on the basis of ‘as-is-where-is’ clause. PNB had to refund the entire amount.

Remember : The buyer will have to pay twice the regular CIDCO Transfer Charges to CIDCO to obtain clear title to the property/flat/shop.

Copies of all documents are given below for reference.

Agreement for registration of Sale Certificate
Agreement to Register Certificate of Sale
Certificate of Sale Auction property
Certificate of Sale

We are sure this article saved you lakhs or probably crores of money as this information is not available anywhere. Please click the picture below to leave a review on google. It won’t cost you any money but will help us reach more people.


Service provided by usCharges
CIDCO Transfer only15,000
Mortgage NOC only15,000
CIDCO Transfer + Mortgage NOC20,000
Only Drafting/Documentation5,000
Drafting and Registration of Sale Agreement/Sale Deed10,000
Brokerage (Purchase/Sale transaction)2%
Brokerage (Rentals)1 month rent/year
Consultation over Phone/Whatsapp/Zoom/Google Meet5,000/30 mins
Pricing chart for our services

By Mayur

Mayur is a real estate professional based in Navi Mumbai for the past 20 years. His expertise in real estate includes every sphere of the real estate sector from legal to Building Construction to Vastu to home interiors. When it's not real estate, its either his fight against corruption or pulling focus (film making) with his NIKON D750 that keeps him busy. With over 9 million views of his pictures on Google Maps and over 1.3 crore views of his contributions, he has been designated as a Master Photographer by Google. He can be reached on 9987452642


  1. I have purchased a flat in auction in Dec 2023 and the sale certificate was registered in Feb 2024. Now I have to apply for CIDCO transfer process. The CIDCO needs NOC from Society but the Society is not willing to issue the NOC as they are scared to the legal issue and because of this the CIDCO transfer process is on hold.
    What action can be taken against society and what can be done in this case ?

    1. you will have to take legal action aainst society.
      if you are interested in taking up the same, please get in touch with us on 9987452642

Leave a comment

Your email address will not be published. Required fields are marked *

WeCreativez WhatsApp Support
Send a whatsapp msg
👋 Hi, how can I help?