Property purchased under sarfasei act, encroached
Querist :
Anonymous
(Querist) 10 June 2025
This query is : Resolved
Dear Team Experts
I purchased a property from Indian bank in an e- auction. The loan defaulter approached the DRT. After few years, hon DRT ordered to take physical possession of the secured assets through court appointed Local commission and to handover to purchaser. Possession was taken as per order of DRT and report submitted. Again DRT ordered to bank official to handover the keys and possession to purchaser on a fixed date. When we went to take possession the loan deafaulter misbehaved with us in presence of bank officials and a complaint was filed in police. Only after police indulgence we could take the possession. Property was registered by bank on my name.
I live away from that place. Now I came to know last week the loan defaulter has encroached in one portion of property and doing structural modifications also. He has started living there with his wife and 2 kids. On paper I am the owner but he has encroached approx. 25% part of the property. What should I do now. Will police help me in removing the encroachment? or I should approach the court for COCP…. Thanks
Preeti
T. Kalaiselvan, Advocate
(Expert) 10 June 2025
After purchase of the property by a registered deed, you become the absolute owner of the property.
The borrower has lost his title hence any act done by him subsequent to the property being registered on your name can be treated as illegal trespass, for which you can lodge a criminal complaint with the local police and request action to throw him out and initiate appropriate legal action to punish him for the offence he committed.
If the borrower forcibly occupies the property after it's legally taken over by the purchaser, the purchaser can file a police complaint for trespass and criminal force.
The police can investigate and take action against the borrower, potentially leading to their arrest and removal from the property.
You may may also seek compensation from the borrower for any losses incurred due to the unlawful occupation of the property.
This can include the cost of repairs, lost revenue, and other damages.
kavksatyanarayana
(Expert) 10 June 2025
While enclosing the copy of DRT order, a copy of your sale deed a complaint in the Police Station concerned.
Querist :
Anonymous
(Querist) 10 June 2025
Thank you so much. I also want to know is it a matter of contempt of court also. Can the borrower be prosecuted under civil original application for contempt of court.
T. Kalaiselvan, Advocate
(Expert) 11 June 2025
It is an illegal trespass for which you have immediate relief through criminal law
Querist :
Anonymous
(Querist) 11 June 2025
Thank you for your precious time.
