Banks Giving Loans Without Proper Title Search Reports : Supreme Court Flags Issue To RBI; Says Officials Who Approved Loan Be Made Liable

The Supreme Court flagged concerns over banks granting loans without proper title search reports. The issue was brought to light when it was discovered that some loans had been approved despite the lack of verification of the property’s legal ownership. The Court urged the Reserve Bank of India (RBI) to look into the matter and hold officials accountable for approving such loans. The judgment emphasized the importance of conducting proper due diligence in financial transactions, particularly those involving property as collateral, to protect both the lending institutions and the borrowers from future legal complications.