A case involving the alleged illegal occupation of a mortgaged residential property has come to light in Chhattisgarh’s Durg district. Police have registered an FIR against a man accused of breaking official seals placed by a bank and forcibly reoccupying a property that had been taken into possession under recovery proceedings.

The complaint was filed by officials of Chhattisgarh Gramin Bank, who alleged that the accused twice broke the bank’s sealed locks and removed notices placed on the property. Authorities claim the actions interfered with the legal recovery process and caused financial losses to the bank.

The dispute is linked to a home loan of ₹26 lakh obtained by Mohammad Kasim Khan and Mohammad Naseem Khan. The borrowers had mortgaged a 1,200-square-foot residential property located in Subhash Nagar, Kasaridih, to secure the loan.

According to bank officials, following the death of Mohammad Kasim Khan, loan repayments were allegedly discontinued. As a result, the account was classified as a Non-Performing Asset (NPA), leading the bank to initiate recovery proceedings under the SARFAESI Act.

Property Sealed Twice

Officials stated that on March 21, 2025, the property was formally taken into possession and sealed in the presence of administrative officials and police personnel following an order issued by the District Magistrate.

However, the bank alleges that Kasim Khan’s son, Mohammad Wasim Khan, broke the lock on the same day and reoccupied the premises along with his family members.

Following complaints by the bank, authorities again took possession of the property on March 10, 2026, and sealed it under administrative supervision. Despite the second action, officials allege that the accused once again entered the property and resumed occupation.

E-Auction Process Delayed

The bank had initiated an e-auction process for the property on April 27, 2026, as part of loan recovery efforts. However, the auction was temporarily halted after the accused reportedly obtained interim relief from the Bilaspur High Court for a limited period.

Bank authorities stated that legal proceedings related to the property remain ongoing.

Inspection Reveals Irregularities

According to the complaint, a team led by the Regional Manager and NPA Manager visited the property on April 28, 2026. During the inspection, officials allegedly found that the bank’s sealed locks had been removed and replaced with different locks.

They also claimed that physical possession notices painted on the property walls had been erased through repainting and renovation work.

Local residents reportedly informed officials that the accused had re-entered the premises after removing the seals, though these claims remain part of the ongoing investigation.

Mutation Allegations Examined

The complaint further alleges that changes were made in revenue records relating to the mortgaged property. Bank officials have claimed that names were added or altered without obtaining the bank’s consent, despite the property being under mortgage.

Authorities are examining the relevant land and revenue documents as part of the investigation.