I took a loan against my house from a bank in India. Now, the bank is claiming they can take possession of my house using the SARFAESI Act. They’ve even applied to the collector for this. I’m currently overseas. The bank sent me a notice under the SARFAESI Act. Can they sell my house? My house is locked. What are the bank and the collector’s powers in this situation?

Apni Law
Apni Law
Law Forum › Category: Banking / Finance › I took a loan against my house from a bank in India. Now, the bank is claiming they can take possession of my house using the SARFAESI Act. They’ve even applied to the collector for this. I’m currently overseas. The bank sent me a notice under the SARFAESI Act. Can they sell my house? My house is locked. What are the bank and the collector’s powers in this situation?
Vote Up
141
Vote Down
Apni Law Staff asked 7 months ago

I took a loan against my house from a bank in India. Now, the bank is claiming they can take possession of my house using the SARFAESI Act. They’ve even applied to the collector for this. I’m currently overseas. The bank sent me a notice under the SARFAESI Act. Can they sell my house? My house is locked. What are the bank and the collector’s powers in this situation?

1 Answers
Vote Up
9
Vote Down

Best Answer

Apni Law Staff answered 7 months ago

Yes, the bank can legally sell your house under the SARFAESI Act if you fail to repay the loan. The collector has the power to take possession of the house on behalf of the bank. However, you have the right to challenge this action in court and seek a stay order.

You Might Also Like

I took a loan of ₹55,000 from Bajaj Finance at 25.49% interest. My monthly EMI is ₹2,650, which I’ve been paying on time. However, after 9 months, Bajaj Finance is asking for ₹51,000 to close my loan. I thought EMI includes principal and interest. Could you clarify this for me?

Back in 2014, I paid ₹2,500 to join a program. They later asked for another ₹2,400, which I refused. As promised, no recruiter contacted me. Then, in December 2015, they called, offering to refund my money. They asked me to visit an ATM to generate an account code for the refund of ₹4,900. Instead, they ended up deducting ₹10,000 from my account, claiming it would be returned within 24 hours. They then switched off their phone. On January 3rd, they called again, apologizing and asking me to go to the ATM to regenerate the code. They repeated this process, and eventually, ₹60,000 was deducted from my account.

My ECS for January 2016 was rejected by IDBI Bank, citing a closed account. I contacted both HDFC and IDBI Bank via email, but received no satisfactory response. After personally inquiring with IDBI, they confirmed in writing that the details submitted by HDFC were incorrect. I provided HDFC with a letter from IDBI on April 28, 2016, but have yet to receive a proper response. Despite daily contact with HDFC staff, they offer excuses every day. Is it advisable to take legal action against both banks for causing me significant mental stress, impacting my CRISIL score, and wasting my precious time?

My family took a home loan EMI from Central Bank’s Seshadri Road branch to buy an apartment on Begur Road. The builder has disappeared and construction has stopped. We are considering legal action. Is there any way to stop paying the EMI to the bank while we resolve this? Please advise.

We took an education loan from SBI a year ago for ₹4 lakhs. We’ve been struggling financially and couldn’t repay the loan. We did manage to pay ₹30,000 in interest towards the loan. However, without any notice, SBI deducted ₹50,000 directly from our personal savings account, which is not connected to the education loan account. How can this happen? Is there any legal recourse for us to get this amount back?

Share This Article
Previous Article Is it possible for 3 unrelated families to share a single flat in an apartment complex governed by the Karnataka Apartment Owners Association?
Next Article My father has lived on this family land for the past 40 years. The family member who allowed him to stay there passed away 15 years ago. While there were some financial dealings between my father and the deceased member, there’s no way to prove them now. The other family members never objected to my father’s presence. Recently, they sold the land to a contractor for development without considering our rights. The sale was completed without my father’s knowledge. Now, the contractor is trying to demolish our home, claiming it’s an illegal encroachment. What legal options do we have to keep our home?

Follow US

Find US on Social Medias
Popular News
- Advertisement -
- Advertisement -
Ad imageAd image

📢 Stay Connected!

Join our community on Telegram and WhatsApp for instant updates, news, and exclusive offers.