LawRato

Tenant Took Loan on My Property Without Consent


09-Jan-2026 (In Recovery Law)
A tenant who lived in my house in 2015–2016 took a loan using my property without my knowledge. The bank has now filed a case and issued a collection notice, but I never received any court notice. I have proof that I am the owner and he was only a tenant. What should I do immediately to stop this?
Answers (3)

Answer #1
873 votes
If the tenant fraudulently mortgaged or took a loan by misusing your property documents, the loan is not binding on you as owner. Immediately give a written objection to the bank with proof of ownership, stating there was no authority or consent. File a police complaint for cheating, forgery and impersonation. If recovery is under SARFAESI, file an application under Section 17 before DRT challenging the action. Also seek a civil injunction/declaration that the mortgage is void ab initio. Obtain case details and move for stay at the earliest.
Helpful? LawRato LawRato
Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRato Mumbai | 1000+ Answers
Chat with Advocate Pankaj Bajaj Chat 
Answer #2
764 votes
A tenant is only a possessory holder, not the owner. Under Transfer of Property Act, 1882, only the owner can create a mortgage. Any loan or mortgage created by a tenant without owner's consent is void and invalid in law. Such act may attract criminal liability for: Cheating (IPC 420) Forgery / use of forged documents (IPC 465, 467, 468, 471) Criminal breach of trust (IPC 406) 2. Liability of the bank/finance company The lender is legally bound to verify ownership documents. If the loan was san ed without proper verification, the ba ance company is also at fault.
Helpful? LawRato LawRato
Advocate Prashant Gupta

Adv. Prashant Gupta

LawRatoMumbai | 50+ Answers
Chat with Advocate Prashant Gupta Chat 
Answer #3
610 votes
This is a case of clear fraud. A tenant has no authority to mortgage or create any charge over the owner’s property. Immediately file a written objection/representation to the bank enclosing ownership documents and proof of tenancy, stating the mortgage is void ab initio. If proceedings are under SARFAESI, file an application before the DRT under Section 17 seeking stay and quashing of action. Lodge an FIR for cheating, forgery and impersonation against the tenant and any bank officials involved. Also seek injunction from a civil court restraining recovery against your property. Absence of notice strengthens your case.
Helpful? LawRato LawRato
Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoPune | 700+ Answers
Chat with Advocate Pankaj Bajaj Chat 

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Recovery lawyers for your specific legal issue
Connect with a Lawyer
Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

LawRato