Legal Question in Banking Law in India

can we buy plots which banks auction as per SARFAESI & DRT act. To what extent bank is liable to protect the buyer post sale. "as-is where is" clause is confusing on the bank's responsibility to the invester post sale. Kindly advise

Asked on 12/24/12, 3:07 am

5 Answers from Attorneys

Somnath mukherjee

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the bank is not responsible after sale through auction.

Answered on 12/24/12, 6:24 am

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Fca Prashant Chavan Expert Edge LLP

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24.12.2012

Dear Sir / Madam,

There is nothing which stops you from buying plots of land which the bank auctions on "as is where is" basis in Bakaram locality, K V Rangareddy District, Hyderabad. It remains the buyer's responsibility to verify the title deed of the land prior to purchase; the bank is in no way responsible or liable to protect the buyer's interest. The way forward is to register each land purchased with the respective office of the local District Collector to ward off any future eventuality.

Regards,

FCA Prashant Chavan

Mumbai

Answered on 12/24/12, 7:11 am

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J. Radhakrishnan independent Practice

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By purchasing in the auctions conducted wither by DRT or by the banks under the SARFAESI Act, one gets the iitle of the mortgagor/ borrower and nothing more, except that it is free from the dues to the Bank for whose benefit it is sold.

Answered on 12/24/12, 7:46 pm

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