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Karkuvel   07 February 2019

Failure to hand over the physical possession of the auctioned property to the bidder by the bank

I participated in the auction sale of a property(house) under SARFAESI act conducted by a private bank based on symbolic possession. I was the successful bidder. After I paid 25% of the bid amount, I was orally intimated that the confirmation certificate for the property will be issued to me within one month but it was not done. I was ready to pay the balance amount(75% of the bid amount) but the bank did not receive the amount. As per the manager, there is a conditional interim order by Debts Recovery Tribunal(DRT) not to confirm the sale for 2 months. There was a case in the court by the loan defaulter regarding the property. The manager did not communicate this to me before I pay 25% of the bid amount. He said this to me after one month of paying the amount & that too, after I asked him. He concealed this information. As I cannot wait for another two months, I told the bank to refund the amount. I sent mails to different levels of the bank up to nodal officer. No response. Sale confirmation letter was issued to me after 2 months. Then, the bank told me to pay 75% of the bid amount. I sent a letter to them stating that I will pay the balance amount only if the bank is ready to hand over the physical possession of the asset to me. The bank replied that 25% of bid amount already paid by me shall be forfeited if I fail to pay the balance amount. I paid 75% of the bid amount and the bank informed that the physical possession of the secured asset will be handed over to me within a month. Three months passed. But, they have not handed over the physical possession of the secured asset to me so far. I have been waiting for the past 7 months(from the auction date). There is no response from the bank. Whenever I ask the bank, they simply reply that they are in the process of taking the physical possession. I told them to refund my money but they don't do. How can I get my money from the bank with interest?


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 3 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 February 2019

Correct Advice by Shri Om Prakash.

G.L.N. Prasad (Retired employee.)     07 February 2019

1.If you want the property, the first issue registered legal  notice to Bank under CP Act

2.If you are not interested in the property, demand for refund of the amount with interest.

3.You have not informed what were the conditions laid by the Bank and their confirmation of your bid in writing as you can make them accountable legally, if they violated those conditions.

P. Venu (Advocate)     07 February 2019

In my understanding, your best option is in approaching DRT.


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