Legal Question in Banking Law in India

What is the UPSET PRICE in the notice given for sale by the bank? My house is a semi independent with a total land area of 2000 sq ft and a uds of 1200sq ft and built up area is 1600 sq ft. The guideland value of the land in our area is Rs.450.00 sq ft and if we charge as Rs.1200.00 per sq ft for construction its work out to be is Rs.540000.00 for land plus for the constructions is 1920000 ie totallying to Rs.2460000.00 and if we work out to Rs.2000.00 as market value for the uds land it will come to Rs.4320000.00 and the constructions is four year old and the bank had given me a loan of 60 lakhs in the year 2008 and three month back the bank had auctioned it for Rs.69 lakhs and again after a span of six month the bank is auctioning for Rs.69 lakhs. Will the bank can accept the value less than the UPSETPRICE of Rs.69 lakhs? What if the bank this time also did not get the required upsetprice, will they settle down less than the upsetprice of 40lakhs? Can you please advice? Will it be right if I say that I agree for the value but you rebook the loan? or should i have to petition the ombudman for having cheated me by the then manager in joining hand with the builder?

Asked on 10/06/11, 1:25 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

0 users found helpful

0 attorneys agreed

The upset price advertised by the bank is as per the valuation given by its approved valuer. If I have understood your question, the Bank has advertised it at an upset price of Rs.69 Lakhs. If according to you the upset price is more than what you think as its present price, there is no point in getting agitated on the same. If the Bank does not succeed in getting a buyer at or above the upset price of Rs.69 lakhs, they will re auction the property by reducing the upset price.

You cannot ask the Bank to rebook the loan. Better find out some purchaser who can offer a better price than what has been advertised by the Bank and get the bank to accept the same on an offer of one time settlement. No banking ombudsman will help you in the matter.

Answered on 10/06/11, 7:10 am

Mark as helpful