Generate an official, bank-vetted Memorandum of Deposit of Title Deeds (MODT) evidencing creation of an Equitable Mortgage in India. Includes First Schedule Title Deeds checklist, Second Schedule property boundaries, Mortgagor Affidavit, Bank Covering Letter, and Form CHG-1 corporate borrowing resolution.
MODT stands for Memorandum of Deposit of Title Deeds — a formal legal instrument that records the physical delivery of original property title documents by a borrower to a bank or lending institution to create an Equitable Mortgage under Section 58(f) of the Transfer of Property Act, 1882.
While the mortgage itself is legally constituted at the instant original title deeds are physically deposited in a notified town with the intent to secure credit, commercial banks require the MODT as contemporaneous written evidence. It attracts nominal stamp duty (0.1%–0.5% capped under State Stamp Article 6) compared to 2%–5% for registered mortgages.
Draft, customize, and export institutional-grade Equitable Mortgage documents with Schedule of Title Deeds, Mortgagor Undertaking, Bank Letter & MCA Form CHG-1 filing clauses.
Rupees One Crore Fifty Lakh Only
Deposit of title deeds MUST occur in a notified town (though the property may be situated anywhere in India).
Auto-updates in real time as you adjust particulars on the left.
(Evidencing Creation of Equitable Mortgage under Section 58(f) of Transfer of Property Act, 1882)
THIS MEMORANDUM OF DEPOSIT OF TITLE DEEDS is executed on this 15/09/2026 at the Notified Town/City of New Delhi, State of Delhi;
ACME TECHNOLOGIES PRIVATE LIMITED, a company incorporated under the Companies Act with CIN U72900DL2022PTC123456, having its Registered Office at Plot No. 42, Okhla Industrial Area, Phase-III, New Delhi - 110020, acting through its Authorized Director, Mr. Rajesh Sharma (DIN: 01234567) (hereinafter referred to as the "MORTGAGOR").
STATE BANK OF INDIA, a banking corporation having its branch office at Commercial Branch, Barakhamba Road, Connaught Place, 11, Parliament Street, New Delhi - 110001 (hereinafter referred to as the "LENDER" / "MORTGAGEE").
1. Deposit in Notified Town: The Mortgagor confirms that on 15/09/2026 at Commercial Branch, Barakhamba Road, Connaught Place in the Notified Town of New Delhi, the Mortgagor physically and voluntarily handed over and deposited with the authorized officer of the Lender all original documents of title detailed in the First Schedule hereunder written.
2. Express Intent: The deposit of the said title deeds was made with the clear and unequivocal intention to create an Equitable Mortgage over the property described in the Second Schedule to secure repayment of ₹1,50,00,000 with interest at 9.15% per annum floating linked to 1-Year MCLR / EBLR plus spread.
3. Continuing Security: This mortgage shall operate as a continuing security for all present and future obligations and balances.
4. SARFAESI Enforcement: The Lender shall have all statutory powers under the SARFAESI Act, 2002 and Transfer of Property Act, 1882 in the event of default.
5. MCA ROC Filing: The Mortgagor Company undertakes to file statutory e-Form CHG-1 with the Registrar of Companies under Section 77 of the Companies Act, 2013 within 30 days of execution.
(List of Original Title Deeds Deposited)
| S.No | Document Type | Doc / Regn No. | Date | Executant / Parties |
|---|---|---|---|---|
| 1 | Original Registered Sale Deed | Registration No. 4521, Book No. 1, Vol. 842, Pages 110-128 | 14/05/2018 | Executed by Delhi State Industrial Infrastructure Dev Corp (DSIIDC) in favour of Mortgagor |
| 2 | Original Mutation Certificate & Property Tax Receipt | Mutation Sanction Order No. MCD/SZ/PROP/2018/992 | 28/06/2018 | Issued by Municipal Corporation of Delhi (South Zone) |
| 3 | Nil Encumbrance Certificate (Search for 30 Years) | Form No. 15, Certificate No. EC/DL/2026/04912 | 25/08/2026 | Issued by Office of the Sub-Registrar-V, New Delhi |
| 4 | Sanctioned Building & Structural Plan | Plan Sanction File No. 12/B/DSIIDC/2019/BP-42 | 10/01/2019 | Duly approved and signed by Chief Architect, DSIIDC, New Delhi |
(Description of Immovable Mortgaged Property)
Property: All that piece and parcel of commercial freehold industrial property bearing Municipal No. 42, with built-up RCC structure thereon, situated at Okhla Industrial Area, Phase-III, New Delhi - 110020 (Plot/Khasra: Plot No. 42, Khasra No. 340/12, Extent: 5,400 Square Feet (Built-up Super Area 12,000 Sq. Ft.)).
WITNESSES:
1. Mr. Vikram Malhotra
2. Ms. Pooja Singhania
For ACME TECHNOLOGIES PRIVATE LIMITED
(Mr. Rajesh Sharma) Director
Borrowers and commercial lenders frequently confuse Equitable Mortgage, MODT, and Registered Mortgage. The table below outlines their statutory origins, stamp duty impact, and enforcement mechanisms.
| Feature | Equitable Mortgage | MODT (Memorandum) | Registered Simple Mortgage |
|---|---|---|---|
| Statutory Governing Law | Section 58(f), Transfer of Property Act, 1882 | Sec 58(f) TPA read with State Stamp Act (Article 6) | Section 58(b), Transfer of Property Act, 1882 |
| Mode of Creation | Physical delivery of original title deeds in notified town | Written memorandum recording the physical deposit | Bilateral mortgage deed transferring interest |
| Typical Stamp Duty Rate | Nil (if no written instrument executed) | 0.1% to 0.5% (Capped at ₹10k–₹10 Lakhs) | 2.0% to 5.0% (Uncapped ad-valorem in most states) |
| Compulsory Registration | Not required under Section 59 TPA | Mandatory in Karnataka, TN, Telangana; Notice of Intimation in Maharashtra | Compulsory under Section 17 of Registration Act, 1908 |
| Custody of Title Deeds | Physical custody with Lender | Physical custody with Lender | Can remain with Mortgagor (unless covenant mandates) |
| Enforcement upon Default | SARFAESI Act, 2002 (Non-court) & Sec 67 TPA | SARFAESI Act, 2002 (Non-court) & Sec 67 TPA | Civil Court Mortgage Suit (Order 34 CPC) or SARFAESI |
| Estimated Cost on ₹1 Cr Loan | ~₹0 (oral deposit) | ~₹20,000 to ₹50,000 (MODT duty) | ~₹2,00,000 to ₹5,00,000 (Uncapped) |
Under Entry 63, List II of the Indian Constitution, Stamp Duty is a state subject. Every state prescribes specific rates for instruments relating to deposit of title deeds under Article 6 of their respective Stamp Acts.
| State Jurisdiction | Applicable Article | Stamp Duty Rate | Maximum Cap | Filing / Registration Compliance |
|---|---|---|---|---|
| Maharashtra | Article 6(1), Maharashtra Stamp Act | 0.2% of loan amount | ₹10,00,000 | Notice of Intimation under Sec 89B MANDATORY within 30 days |
| Karnataka | Article 6, Karnataka Stamp Act | 0.1% to 0.2% of loan | ₹10,00,000 | Compulsory Registration under Karnataka Regn (Amendment) Act |
| Tamil Nadu | Article 6, Tamil Nadu Stamp Act | 0.5% of loan amount | ₹40,000 Cap | Mandatory registration under Section 17 within 4 months (+ 1% regn fee) |
| Delhi (NCT) | Article 6, Indian Stamp Act (Delhi) | 0.5% of loan amount | Subject to local schedule | Registration optional if memorandum merely records past deposit |
| Gujarat | Article 6, Gujarat Stamp Act | 0.25% of loan amount | ₹4,50,000 | Franking or e-stamping mandatory before document deposit |
| Telangana & AP | Article 6, Stamp Act (TS/AP) | 0.5% duty + 0.1% regn | No uniform ceiling | Registered MODTD standardly mandated by commercial banks |
| Uttar Pradesh | Article 6, UP Stamp Act | 0.5% of loan amount | State schedule slabs | Deposit must be made in notified municipal corporations |
| West Bengal | Article 6, Bengal Stamp Act | 0.25% to 0.5% | Slab based | Kolkata is a statutory presidential notified town under TPA |
| Haryana | Article 6, Haryana Stamp Rules | 0.1% to 0.5% | Capped under rules | Follows Supreme Court Narvir Singh jurisprudence on oral deposit |
| Rajasthan | Article 6, Rajasthan Stamp Act | 0.5% of loan amount | ₹10,00,000 | Capped ad-valorem duty with standard banking safe custody |
When an Indian Company (Private, Public, or OPC) executes an MODT, it creates a charge on its immovable assets under the Companies Act, 2013. The transaction triggers mandatory secretarial steps that must be fulfilled alongside bank documentation.
Pass a resolution at a duly convened Board Meeting under Section 179(3)(d) (to borrow) and Section 179(3)(e) (to create security / mortgage). Circular resolution is strictly barred for borrowing.
Under Section 77(1), the company must file e-Form CHG-1 on the MCA portal within 30 days of executing the MODT. Attach certified copy of sanction letter, MODT, and title schedule.
Max delay: 60 days (+ ad valorem)Under Section 77(3), an un-registered mortgage is VOID against the Official Liquidator and creditors. In insolvency under IBC 2016, the bank loses secured creditor status!
Requires RD Condonation (CHG-8)Indian courts have rigorously interpreted Section 58(f) across four landmark Supreme Court decisions that define how MODT documents must be drafted to withstand judicial scrutiny.
The Supreme Court established three sine qua non conditions for a valid equitable mortgage: (i) a debt, (ii) a deposit of title deeds, and (iii) an intention that the deeds shall be security for the debt. Crucially, the Court ruled that while the physical delivery of documents must take place in a notified town, the mortgaged immovable property can be situated anywhere in India.
The Supreme Court drew a sharp distinction between a memorandum that merely records an already completed deposit of title deeds and a document that itself reduces the contract of mortgage into writing. If the memorandum merely serves as a record or memorandum of a past deposit, it does not require registration. If it embodies the mortgage bargain itself, it requires compulsory registration.
The Supreme Court reaffirmed that an equitable mortgage is completed solely by the physical act of depositing title deeds with intent to create security. No writing is necessary to validate the mortgage. However, where a written memorandum is executed and falls within the definition of an "instrument" under the relevant State Stamp Act, ad-valorem duty under Article 6 becomes payable.
The Supreme Court held that delivery of original documents of title is an indispensable requirement for creating a mortgage by deposit of title deeds. Depositing secondary copies, photocopies, or certified extracts does not create an equitable mortgage, as allowing copies would open the door for unscrupulous borrowers to pledge the same asset with multiple lenders.
A legally defective First Schedule can render an equitable mortgage vulnerable in SARFAESI proceedings or DRT challenges. Ensure the following original instruments are listed in sequential chronological order:
Original registered Sale Deed, Gift Deed, Partition Deed, or Allotment / Perpetual Lease Deed establishing the Mortgagor's direct title.
Prior conveyance deeds tracing unbroken chain of ownership from the original developer/landowner down to the current mortgagor.
Khata Certificate & Extract (Katha A/B in Karnataka), Jamabandi / Fard in North India, or 7/12 Extract in Maharashtra confirming mutation.
Form 15 issued by the Sub-Registrar certifying that no registered charges, mortgages, or court attachments exist on the property.
Duly approved architectural drawing and sanction order from the municipal corporation (MCD, BBMP, BMC, DDA, CMDA, etc.).
Up-to-date assessment receipts confirming zero municipal arrears, plus No Objection Certificate from Cooperative Housing Society.
Closing a loan does not automatically clear the land registry records or MCA charge database. Borrowers must follow the 5-step statutory satisfaction procedure:
The bank issues a formal NDC confirming zero outstanding balance. Under RBI Circular dated Sept 13, 2023, the bank must return all original title deeds within 30 days of full loan repayment. A penalty of ₹5,000/day applies thereafter.
If the MODT was registered at the Sub-Registrar (mandatory in Karnataka, TN, Telangana), the bank must execute and register a Deed of Reconveyance or Release Deed to remove the entry from the Encumbrance Certificate.
The lender must update the Central Electronic Registry (CERSAI) reporting satisfaction of security interest within 30 days so that future title search reports show the property as free from all encumbrances.
For companies, file e-Form CHG-4 with the Registrar of Companies within 30 days of full payment under Section 82 of Companies Act, 2013. The ROC issues a Certificate of Registration of Satisfaction of Charge (Form CHG-5).
MODT stands for Memorandum of Deposit of Title Deeds. It is a formal legal document executed by a property owner (mortgagor) in favour of a lender (mortgagee/bank) confirming and evidencing the physical delivery of original property title deeds with the express intent to create an Equitable Mortgage under Section 58(f) of the Transfer of Property Act, 1882.
An Equitable Mortgage (Mortgage by Deposit of Title Deeds) is a legal transaction created purely by the physical delivery of original title deeds in a notified town with the intent to secure a debt. The mortgage comes into legal existence at the exact moment of physical deposit. The MODT (Memorandum of Deposit of Title Deeds) is the contemporaneous or subsequent written instrument that records and proves the transaction, details the underlying loan amount, and specifies the exact schedule of deposited documents.
Commercial banks prefer MODT because of immense cost and administrative savings for the borrower. Stamp duty on MODT is typically 0.1% to 0.5% (capped at ₹10,000 to ₹10 Lakhs in most states), whereas a Registered Simple Mortgage or English Mortgage attracts 2% to 5% ad-valorem stamp duty without any ceiling. Additionally, banks can enforce an equitable mortgage under the SARFAESI Act, 2002 without court intervention.
Under Section 59 of the Transfer of Property Act, 1882, an equitable mortgage does not require compulsory registration if the document merely records a past deposit. However, several states have amended their local registration laws: Karnataka, Tamil Nadu, and Telangana have made MODT registration compulsory under Section 17 of the Registration Act. In Maharashtra, if the MODT is not registered, filing a "Notice of Intimation" under Section 89B within 30 days is mandatory.
Under Section 89B of the Registration Act, 1908 (Maharashtra Amendment), whenever an equitable mortgage is created by deposit of title deeds without registered deed, the mortgagor and lender must file an e-Notice of Intimation with the Sub-Registrar within 30 days of the deposit. Failure to file this Notice within 30 days is a punishable offence with imprisonment and monetary fines under Section 89C.
In Maharashtra, under Article 6(1) of the Maharashtra Stamp Act, stamp duty is 0.2% of the loan amount, subject to a statutory cap of ₹10,00,000. In Karnataka, under Article 6 of the Karnataka Stamp Act, duty ranges from 0.1% to 0.2% capped at ₹10,00,000. In Tamil Nadu, stamp duty is 0.5% capped at ₹40,000 plus 1% registration fee capped at ₹40,000.
Under Section 58(f) of the Transfer of Property Act, 1882, the physical delivery/deposit of title deeds MUST occur in a notified town (such as Mumbai, Kolkata, Chennai, Delhi, Bengaluru, Hyderabad, Ahmedabad, etc.). However, as established by the Supreme Court in K.J. Nathan v. S.V. Maruthi Rao, the mortgaged immovable property itself can be situated anywhere in India.
Yes. Under Section 77(1) of the Companies Act, 2013, an equitable mortgage constitutes the creation of a statutory charge on the company’s immovable property. The company must file particulars of the mortgage in e-Form CHG-1 with the Registrar of Companies (ROC) within 30 days of execution. Failure to register renders the mortgage void against the liquidator and subsequent creditors.
The MODT is primarily an unilateral or bilateral memorandum executed and signed by the Mortgagor (property owner) and verified by two attesting witnesses. In commercial banking practice, the bank branch manager or authorized credit officer signs a separate Safe Custody Acknowledgment or joins as a confirming party acknowledging receipt of original deeds.
The First Schedule must contain the complete chain of original title documents for at least 30 years, including: the Original Registered Sale/Conveyance Deed, Mother/Parent Deeds, Khata/Patta/Mutation Sanction, Nil Encumbrance Certificate (Form 15), Sanctioned Building Plan, and Property Tax receipts.
Yes, agricultural land can be mortgaged by deposit of title deeds under Section 58(f) of the TPA, provided the deposit occurs in a notified town. However, state land reform laws (e.g. Karnataka Land Reforms Act, Maharashtra Tenancy Act) may restrict mortgaging agricultural land to non-agriculturists, though commercial banks and agricultural credit societies are generally exempt.
CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) is a statutory registry established under Chapter IV-A of the SARFAESI Act, 2002. Banks must register every equitable mortgage on CERSAI within 30 days to prevent fraudulent multiple mortgaging of the same property to different lenders.
No. The Supreme Court in Syndicate Bank v. Estate Officer held that delivery of original title deeds is an indispensable prerequisite for creating an equitable mortgage. Depositing photocopies or certified copies does not create a valid equitable mortgage, unless the original deeds were conclusively proven to be lost/destroyed and secondary evidence was accepted with public notice.
Yes, provided the Power of Attorney is registered and explicitly contains a specific clause authorizing the attorney to borrow money, deposit original title deeds, and create mortgage/security over the principal’s property in favour of banks or financial institutions.
Upon full repayment of the loan, the bank issues a No Dues Certificate (NDC), hands back the original title deeds against a physical acknowledgment, satisfies the charge on CERSAI, issues a Deed of Reconveyance/Release (if registered), and signs MCA Form CHG-4 for satisfaction of charge with the ROC.
Under Reserve Bank of India (RBI) circulars dated September 13, 2023, banks must return original title deeds within 30 days of loan payoff. If lost, the bank must bear the cost of obtaining certified duplicate copies, publish public notices in newspapers, issue an official certificate of loss, and compensate the borrower at ₹5,000 per day of delay beyond 30 days.
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