Legal Question in Real Estate Law in India

It is always advisable not to get into any transaction ARCIL with regard to properties .......Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

07.02.2013

Dear Sir / Madam,

(Behala / Jayshree Park / Panchanantala / Senhati, Kolkata, West Bengal)

ARCIL is just a loan rating agency which provides a customer's track record information of loan(s) he has taken to banks. ARCIL does not have the power to auction the property of a loanee who has defaulted in settlement of the loan.

Recovery proceedings are initiated by the concerned bank that has granted the loan as per the provisions of the SARFAESI Act of 2000. The auction sale clearly specifies that the buyer takes over all the prevailing encumberances on the purchase of an auctioned property.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

ARCIL - Asset Reconstruction Company of India Ltd - is legally entitled to sell the property, under SERFESI Act which are mortgaged to bank. Normally ARCIL buys such 'portfolio' from the lender bank. In view of this ARCIL can sell the property and the buyer gets good title. However, ARCIL has to follow the due process of law as laid down under the law.

May be...

Normally, such auctions are on as is where is basis. Therefore, be sure about anything and everything.