Legal Question in Banking Law in India

Re: DRT set aside our application under securitisation act

No, we suggest you should challenge the sale.

Re: DRT set aside our application under securitisation act

The bank as a buyer can buy the property which was held by itself as collateral security.If you are purchasing the same property which is under your custody there is no such restriction that you have to fulfil the requirements like outside parties.But the bank has to publish the auction notice to welcome the general public to take part if interested it cannot do anything onesided.You can proceed to the civil court for restoring your property and your right.

Re: DRT set aside our application under securitisation act

You may challenge the sale before DRT with all the legal grounds available to you.

Re: DRT set aside our application under securitisation act

Bank cannot legally purchase the property which it is selling in the public auction under the SARFAESI Act. If in one or more auctions widely published, it does not fetch the upset price, then the Bank may write to the borrower that it is itself acquiring the property at the upset price from the authorised officer of the Bank and adjust the sale price in the outstanding without any necessity to pay up front 25% or any other earnest money. If what you say that the Bank has bid even at the first auction the property it purported to sell, it is open to challenge before the DRT. Consult local lawyer and proceed without waste of time.