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SMy father purchased a property at a bank auction for investment purposes. Some family member advised him to do that. He followed all the legal procedures and has the necessary paperwork. However, the previous owner is still occupying the property with his whole family and have been for several years. They refuse to vacate, despite my father’s attempts to communicate with them. The occupying people are the original defaulters who lost the property.
He’s already pursuing legal avenues, but as we all know, the Indian legal system can be quite time-consuming. The police is obviously not helpful. The bank didn’t help as well. I’m looking for any advice or insights on how to expedite the process or any specific legal strategies I should be aware of. I want to help my father with this. This has been a source of stress for many years and my father is worried about losing all his money that he used to buy the property.
Some context: this is in a village in bihar
P.s: We want to resolve this situation peacefully and legally. My father is a very kind man and will not resort to violence or other illegal tactics so please don’t suggest that.
Has anyone experienced a similar situation or have any advice on the best way to proceed? Any help would be greatly appreciated.
Thanks in advance. -
HHow did the bank conduct auction without taking possession of the property?? Did you guys not check the property you were buying before making payment? In any event, the bank was required to take possession of the property prior to auctioning it. Check the exact terms & conditions of the auction mentioned in auction notice and file a case against the bank to deliver peaceful possession of the property or to pay back the full amount with interest. Frankly speaking you guys should have done necessary due diligence before buying property in auction from bank.
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CBanks have two types of auctions. One is called legal possession and one is physical possession. You should always buy auctions where bank has physical possession
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HWhat you are talking about is called symbolic possession and not legal possession. Also, it is not legal for bank to auction property just based on symbolic possession. They are required to take actual physical possession of the property before they can auction it. There are many judgments on this issue.
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CI have bought bank auction properties before and this is an actual risk when buying auction properties. Bank managers clearly declare on the SARFESI act notice if it is physical possession or not. They buyer has no legal standing here to contest the auction
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HAs I have said in the main comment, he must read the terms and conditions of the auction first before filing any case. Also, auction based on symbolic possession is not considered a complete transfer of property since you can only transfer what you actually have. In such cases right and title to the property are transferred but possession is not since the secured creditor himself does not have physical possession. And the secured creditor still retains the right to recover physical possession of the property under S.14 of SARFAESI (there is a judgment of supreme court on this issue). That being said how complicated the case against the bank would be depends on the terms and conditions mentioned in the auction notice. Thats why any person buying property in auction from bank must do necessary due diligence.
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MWithout banks possession auction should have not been done. Due diligence not done. The defaulters are in cahoots with bank staff who must have given them this workaround. Courts will take long time to resolve, hire goons to throw them out. Else take a loan on it and default and let bank repossess the same. Either ways there is a loss, you just have to reduce the loss.
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CHow many bank auctions did you buy. Banks clearly advertise if they have legal or physical possession. Bank has right to sell legal possession property even if they don’t have physical possession
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MDue diligence not done is the main point.
And regards to how many bank auctions I have bought into, well let’s just say quite a bit. Have you heard of asset reconstruction companies ? Let’s leave it at that.-
CAsset reconstruction is completely different than a retail auction. In AR – the property scope etc is very different and the legal provisions and due diligence are much superior due to the stakes involved. RERA act etc are additional provisions in AR. I have seen multiple small time retail auction buyers stuck in this situation and courts have ruled that the banks can sell legal and symbolic possession
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KDid you offer cash for keys? That’s say, you will pay them 1L if they vacate in a week. That would be cheaper than long court battle. BTW, we are fighting a court case for last 40 years and the original participants are all dead. Second generation is carrying out the case. Only lawyers are getting rich.
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UWell, the bank can (and do) auction properties even without posession.
Such properties are adequately advertised as such, and (generally) come with a discount to fair market value. Preceeding an auction, there is a window for property inspection for interested buyers, I am assuming you hadn’t checked it around that time.I am willing to bet that the banks followed all due processes down to the letter. You my friend on the other hand didn’t do your due dilligence.
Your options are –
1. Get a lawyer to review your sale deed that you signed with the bank, if it is your lucky day and they did make a lapse in declaring, kudos your problem will be solved in under 6 months.
2. Get a lawyer and file an eviction suit to get possession of your property, process and timelines vary by state.Best of luck, and alawys remeber to due thorough due dilligence before investing your hard earned.
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UDo setting with local police then hire goons or seek help from politically connected men.
Jiski lathi uski bhains strategy will bear fruits.
Legal ways will drain your money and energy.
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UBank auction properties are really safe to buy only if you are good at reading the fine line . In your case The bank had just a symbolic possession and has sold on the ” A is where is , whatever it is ” . This is a norm as much as selling off only those properties that they have physical possession , All this is clearly mentioned in auction documents, Symbolic possession go in deep discount on the property is to compensate for the effort to get physical possession . You have no other option but to follow the norms as the rest all follow it conventionally. Hire a lawyer .
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ALawyer here.
Psu bank then directly approach high court via writ petition seeking refund with interest.
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Dhello, lawyer here, under what proceure did the bank auction the property? did your father buy the property under SARFAESI Act, ? if yes then its the banks responsibility to get you the possession of the property, even otherwise the onus would be on the bank to provide you with the possession of the property, i would require the details of under what auction did you dad buy the property to guide you more.
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Generally when a property is auctioned off via due process as followed under sarfaesi. There is no way anything of the previous owner can be left behind. Neither them nor their belongings.
The police station should have an account of it since it normally happens in the presence of police.
So I don’t understand what has happened. But I can tell you that you should exert pressure on the bank. You did them a massive favour by removing a siezed property off their books. Being a nice guy is of no use when dealing with the bank.
Not a lawyer but an ex banker.
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