Legal Question in Banking Law in India
Can banks initiate SARFAESI action in a case where they had given loan to a customer for purchase of an under construction property from a builder based on agreement to sell between builder and customer and permission to mortgage issues by the builder in favour of the bank? Property is complete however possession not taken by builder and conveyance not executed.
Asked on 6/24/11, 12:17 am
2 Answers from Attorneys
J. Radhakrishnan
independent Practice
The Bank can proceed in the DRT for recovery and attach the property agreed to be mortgaged. Taking SARFAESI proceedings when the conveyance has not been executed in favour of the borrower would not be of any assistance to the Bank.
Answered on 6/25/11, 9:01 pm
RAJIV GUPTA
(Cell: +91 9811284735) [email protected]
unless the possession is obtained by the builder, how can the property be mortgaged. the bank committed an error from the very beginning.
Answered on 6/26/11, 6:07 am
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