securization act

Querist : Anonymous (Querist) 02 December 2010 This query is : Resolved
dear sir,

i have one unit in which 5 bank and finacial institution tis there

i have laready settle and paid off 4 bank and finacial institutions

onle one bank panding and bank has also send me the notice under the sarfaci act.

this is kotak who taken my account through icici

they have onle 9% of total loan

what should i do.

i have made all the payment as gurator of the unit.

thnaks

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malipeddi jaggarao (Expert) 04 December 2010
The bank is going against you under sarfaesi Act. This means some immovable property belonging to you is given to the Bank as security. Since you have already cleared the dues of 4 banks, it is advisable to clear these dues also to get back your documents of title to the property given as security.

Virender Negi (Expert) 05 December 2010
under the SARFAESI Act when there is a consortium lending the Bank taking action under 13 needs to have consent of 3/4 of the lenders. in your case since you have settled dues with 4 banks only one is left thereby comprising 100% of the debt and the Bank is rightful in initiating action under 13. in your case since its just the notice i.e. under section 13(2) you can raise objections under section 13-3(a). thereafter if the banks proceeeds u/s 13(4) (taking possession) you can file an appeal under section 17 with the DRT. as you have settled 4 out of the 5 lenders it may come to your advantage in the matter..