A court decision on January 19, 2026, in Bombay has determined that Axis Bank must hand over property documents to the court while a legal argument between Aditya Birla Housing Finance Ltd. and Axis Bank takes place.
Aditya Birla Housing Finance Ltd. filed a request on January 6, 2026, asking Axis Bank to give up the property documents for a place in Dwarka, Delhi. These documents were held by Axis Bank after the people who borrowed money from both banks used the property as security.
The people who borrowed money first took loans from Axis Bank. On July 17, 2023, they went to Aditya Birla for a new loan to pay back Axis Bank. Aditya Birla approved a loan of ₹4.7 crores on August 31, 2023, expecting to use the property as security.
Even though Aditya Birla sent money to Axis Bank to pay off the borrowers' loans, Axis Bank did not give up the property documents. On January 10, 2024, Aditya Birla asked for the documents, but Axis Bank said there was still money owed. By February 8, 2024, the borrowers' accounts were marked as bad loans.
On March 28, 2025, the court stopped Axis Bank from selling or giving rights to the property to anyone else. Even after Axis Bank asked the court to change its mind, the court told them to give the property documents to the court by August 26, 2025.
Aditya Birla's Position: They said Axis Bank knew it was a case of transferring a loan. They had already started a legal argument against the borrowers and Axis Bank.
Axis Bank's Defense: They said there was no direct deal with Aditya Birla and that the borrowers' accounts were not fully paid. They argued that they had the right to keep the documents because some money was still owed.
Judge Sandeep V. Marne pointed out that Axis Bank acted poorly by not recognizing the loan transfer and letting the borrowers misuse the extra money they could borrow. The court decided that the property documents should stay with the court until the legal argument is settled.
The court left the question of whether Axis Bank can be included in the legal argument open for future discussions. Meanwhile, the property documents being with the court means that Axis Bank or the borrowers cannot sell or misuse the property.
