Legal Question in Banking Law in India

Re: sarfaesi

The Bank usually takes possession of the property by giving advance notice to the lender, the police and the Collector, about the date and time of possession.

On the basis of Bank's notice, the police may also serve a notice upon the lender and persons in possession of the property seeking delivery of clear vacant possession to the Bank on the date and time fixed.

It is duty of the lender to deliver possession of the property by taking away all the movables on or before the date and time fixed in the notice.

If the lender does not come forward to vacate the property, the Bank may prepare an inventory of movables in the property in the presence of two independent witnesses and may, at the cost of the lender, keep the same in safe custody for delivery to the owner.

Re: sarfaesi

Normally the Bank takes only symbolic possession of the immovable property under Rule 8 of the Rules under the SARFAESI Act. It is highly improbable for a bank or FI to take actual possession. The owner of the immovable property is free to remove the movables out of the same. If he fails and when the Bank takes actual possession or delivers possession to its auction purchaser, it is expected to take an inventory of the movables and keep them in safe custody and notify the owner to take delivery of the same. If the debt is not discharged on sale of the secured immovable property, the Bank can have the movables attached by proceedings before the court or DRT and have them sold for its dues. Wearing apparel and other personal effects are exempt from attachment and have to be delivered to the owner whose immovable property was earlier sold under the Act.

Re: sarfaesi

Yes the bank can take the possession of the property which is charged. Before taking the possession of the movable property which is not charged the bank has to notify the same.Without the notification the bank cannot take the possession.