Sarfesi act

Advocate M J (Querist) 26 January 2013 This query is : Resolved
Good afternoon respected members
My client who is a retied aged school teacher has got a home loan 4 years back, against which he has being paying the EMI regularly, due to discrimies in his loan account charging heavy over dues towards late payement fees and cheque bouncing charges to the tune of 1.5 lakhs. My client has already intimated in writing not present the ECS since the account was closed, deliberatly after collecting every month EMI STILL the ECS was sent due to which my client stopped the EMI'S for 2 to 3 months after which the bank book my client property under Sarfaesi ACT AND COLLECTED 1.60lakhs from my client giving the cash receipt for the same, after which my client was still paying the EMI for 4 to 5 months
Now that the bank had stopped taking the EMI's and asking for futher Rs60,000/- has overdue charges. MY client now wants to book them under IPC sections towards falsification of accounts and cheating my collecting exuberant overdue and also my client wants to file a case in the consumer court for recovery of the exuberant overdue collected by them or get it adjusted in the future EMI.
kINDLY guide me in getting justice to this school teacher
Thank you

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Kiran Kumar (Expert) 26 January 2013
better approach the Banking Ombudsman, if there is some illegal banking practice for quick removal of his/ her problems.

if the bank had already moved under SARFESI act then better seek remedy before the DRT as advised by Mr. Ganguly.

deal each and every fact carefully.

K.K.Ganguly (Expert) 26 January 2013
1) First of all make sure that the Bank has charged interests etc. over and above what have been prescribed as per RBI guidelines in these regards. Your thinking that the Bank is charging "heavy overdues towards late payment fees" violating the directive of RBI guidelines may not be correct and it needs to be rechecked if your Bank is a PSU Bank,
2) You said that "the Bank has booked your property under SARFAESI Act". What does it mean? Have they issued Demand Notice u/s13(2) of the Act declaring your account as NPA? Have they also thereafter issued Possession Notice u/s13(4) of the Act?
3) If Possession Notice has been issued to you, then only you can file an application before the DRT u/s17 of the Act. Not before that,
4) If the Bank has not issued Possession Notice, then the best option will be to approach the Bank to get your doubt clarrified & if not satisfied, to approach the Banking Ombudsman,
5) Handle things carefully since SARFAESI Act is a Draconian Act.