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…and all for want of a horseshoe-nail

This title may seem unusual to many of you. But once you read this post through, you will most likely agree with my title selection.

Today morning, one of my colleague shared a mortgage fraud related news story with me. It was about how a few individuals were able to defraud a bank by offering the same property as a security to 2 lenders and then failed to repay the loans secured against that property. To make things worse, it also appeared from the news story that the mortgaged property was sold off to a third party.

As I read the story, I could not help feeling bad for the bank. It was then that I was reminded of the short poem I was taught in primary school which ended with the line I have used as the title of this post. But let us get back to the case.


The news item was published in Sandesh (Gujarati daily newspaper) Surat edition today (3rd January 2018) about a mortgage fraud in the city. It said that a police case was lodged against a borrower for defrauding Rajkot Nagrik Sahkari Bank Ltd. When the loan was not repaid by the borrower, the bank decided to initiate recovery proceedings and looked into the mortgaged property. This is when the bank realised that the mortgage property against which the loan was secured either did not belong to the borrower / guarantors or was sold off without the permission of the bank.

Mortgage property:    Plot no. 48, Bajrang nagar Society, Survey No. 114/5, mouje Fulpada, Varachha Road, Surat.

Borrower:                   Madhuben Zaverbhai Khakheriya & others / Khodiyar Fashion

We at News4Use decided to search in our property public notice data repository to check if this property had any other history of public notices. And we did find a match.

Dena bank had extended loan on the security of the same property. When the loan was not paid, proceedings for recovery under SARFAESI were initiated. A possession notice was issued by Dena Bank on 11th September 2015, followed by other type of notices. As the last auction notice under SARFAESI was published in February 2017, Dena bank may have managed to recover its dues.

If only Rajkot Nagrik Sahkari Bank had availed services of a public notice surveillance system like News4Use, it would have been notified of the double lending as early as September 2015 and could have initiated suitable action to protect its security interests better.

And thus this poem –

“For the want of a nail the shoe was lost,

For the want of a shoe the horse was lost,

For the want of a horse the rider was lost,

For the want of a rider the battle was lost,

For the want of a battle the kingdom was lost,

And all for the want of a horseshoe-nail.”

― Benjamin Franklin.

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