Legal Question in Banking Law in India
Sir, my brother took a loan of 25 lacs from a bank, where a third party mortgaged his land and building as security, and he was the guarantor too. Some LIC policies of around 4 lakhs and F.D of 1 lakh was provided by my brother as security also. Unfortunately my brother was cheated very badly by one of his friends where my brother made huge loss and could not run the business. In the meantime the account turned NPA. Bank noticed my brother and the gurantor also. But he is helpless.
Bank has advertised possession notice in the paper about the mortgaged property.
Sir , what can bank do after this? Can they implicate us in any way! Or can they do anything against my brother? Or take our property?
1 Answer from Attorneys
It appears from your question that your brother has not mortgaged any property and only the guarantor for your brother has mortgaged his property. In such a case, the Bank will auction the guarantor's property and for any short fall proceed against your brother and his properties, if any, thereafter.
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