Delayed Return Of Property Documents Post Loan Closure Nbfc Forcing Borrower To Bear Mod Charges

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My father closed a mortgage loan with an nbfc on july 15 2025 as final settlement , and we received official confirmation via email and SMS that the loan is fully repaid and documents are ready in local branch . However, the branch is now refusing to hand over the original property documents unless we cancel the MOD (Memorandum of Deposit) ourselves and pay ?5,000+ in registry whatever to be paid and other charges in register office saying they will send an assistant to help in process only . This is despite the fact that the MOD was created by the NBFC at the time of sanction Worse, they re now threatening to send our property documents back to the head office if we don t comply clearly to delay release and avoid responsibility. This behavior is unethical and non-compliant. NBFCs must stop misusing MOD as a tool to extort charges or harass borrowers especially senior citizens and those from rural or semi-urban backgrounds. Please investigate and highlight such cases. Many vulnerable borrowers remain unaware of their rights and RBI s clear rules.

Though it is the primary responsibility of the lender to arrange for cancellation of charge on Memorandum of Deposit of Title Deeds (MDTD), it is advisable for the borrower to participate in that process by going to the registrar s office to ensure smooth cancellation. Any charges / fees to be paid in that office are out of pocket expenses and should be borne by the borrower. It may be noted that the NBFC has not only completed all other procedure and but is even ready to send its representative to the registrar s office alongwith the borrower to help him. It is now only submission of the cancellation letter and relevant documents given by the NBFC. Considering that the MOD is of utmost importance, the borrower should take immediate steps instead of westing more time to argue with the NBFC.

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