Legal Question in Banking Law in India

Re: Sarfaesi ACT

Probably the bank connot make any addition or alteration.

Re: Sarfaesi ACT

Consult a banking (DRT) expert/advocate

Re: Sarfaesi ACT

It may not be permissible to so such an act by the Bank. As per Rule 4 of the Secuirity interest Enforcment rules 2002 an authorised officer of the Bank is required to take as much care of the property as an owner of ordinary prudence would under similar circumstance take of such property. Further as per the Section 13(8) of the SARFAESI Act if the dues of the secured creditor along with costs, charges etc are paid at any time before the date fixed for sale the bank shall not sell the property. In such a case the Bank may be bound to return the possession to its owner in the same condition as it was when the Bank took possesion. Therefore if the building is demolished even before sale and before the date fixed for sale the amount due to the Bank is paid then the Bank may not be in a position to return the property in the same condition which may result in the owner of the property claiming damages against the Bank. Even if the amount due to the Bank is not paid before the sale date and the sale takes place, then also there is a possiblity of the mortgagor contending that on account of the demolition of the building the property did not fetch its real value and therefore the Bank is liable to compensate him or that he is not liable to pay to the Bank the balance amount which may be due after deducting the amount realised by the sale of the property. Therefore it is not advisable to the bank to heed to such a request.

Re: Sarfaesi ACT

The Bank cannot make any alterations to the property which it has taken possession under the SARFAESI Act. It has to auction the same in 'as is where is condition'. No prospective purchaser can demand that the building is to be demolished before he can bid for the property.

Re: Sarfaesi ACT

You have not stated your problem, if any.

The bank may deal with its property in accordance with law.