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RohitK (N/A)     31 July 2013

Bank foreclose and sold my property - help please


I had a loan with bank some years back and stopped paying the EMI in 2008. I recently approached them a few months back to clear the loan but they informed me that they had already sold my property.

Their lawyer checked the records and informed me that the property was sold for 20 lakhs above the loan ammount due. Hence, as per RBI rules the extra should be returned to the customer.

However, the bank is playing the fool and asking us to come back each week without resolving the matter. They keep saying that it is taking time to prepare the documents and check the procedure but months have gone by and nothing has happened.

How do I get my money back from the bank at this stage?



 9 Replies

Prashant Agnihotri (Lawyer)     31 July 2013

File the complaint in Consumer forum,this is an illegal,bank cannot able to sell your property,without getting a decree from the court in this behalf,& they also need to get permission from local administration and police administration.

adv.raghavan (Advocate,9444674980)     31 July 2013

do you have details when it was sold,i.e., which year? and have u changed your communication address, which u have not informed the bank about this. wait for some time and send a legal notice to the bank asking details, because bank has to follow lot of procedure in case borrower  was  not traceable.

Sudhir Kumar, Advocate (Advocate)     31 July 2013

based ont he given facts the strory is unconvincing that bank sold property and you did not know about it.


Sudhir Kumar, Advocate (Advocate)     31 July 2013


(it is vital for my next response)

c.p.s. ramachary (1500)     31 July 2013

Your query does not disclose about receipt or non receipt of the statutory notices under Sec.13 of SARFAESI Act or Rule 8(6) if S,I.(E) Rules. No body can find resolutions to this problem for want of information. Filing of complaint or going to consumer forum are of no help to you.

RohitK (N/A)     31 July 2013

Actually, the property in question was an investment in Bangalore. I never lived in it and only saw it once before I bought it. I moved soon after to a different city and didnt think twice about it after that untill sometime back. The bank was not able to contact me for quite sometime and they must have declared it NPA and auctioned it off. According to their records, it was sold back in 2010.


I have no issue that they have sold the property. They probably got judgement from Debt Tribunal Court to sell the property in my absence and I am fine with that. I am just wondering how to get the extra money due to me from the bank.



So yes, I did not know about it because I never followed up with it. If my main house or something was being sold then for sure I would have got to know since relatives and friends would inform me but that was not the case.


Also, yes it is a public setor bank.

What should I do? Their advocate and bank manager have both confirmed that the property is sold and 20 lakhs should be credited to my account. They are however constantly delaying. I even gave a letter to the bank manager requesting to credit my money but nothing is getting done. I dont know why they are delaying especially since they have all acknowledged that the money is mine.


I am also confident that they are not lieing because otherwise they would be chasing me to clear the loan or pay my dues.


What should I do?

c.p.s. ramachary (1500)     01 August 2013

We understand that you are fully aware of what has transpired or was transpiring consequent to your default in repayment of loan. The Act and the Rules are framed in such way that one cannot escape action hiding elsewhere. It seems you were not interested to know what was going on in the matter except knowing end result of the action under the Act.

If you are interested to know the details of the action including appropriation of sale proceeds, it is open to you to invoke "Right to Information Act" since it is public sector bank. 20 years is the limitation for public sector undertakings to maintain records and they are bound to furnish the information notwithstanding the delay on your side which is not beyond 20 years. Please seek for information from them and com back for any necessary advise from this forum.

RohitK (N/A)     02 August 2013

I am back with some news friends.

After some digging, I have found my money I think.

There is an FDR in the banks branch with my name and PAN which I have never deposited. The value of the FDR matches the extra from sale proceeds. I do not have the receipt for this FDR since I never even deposited it.

Is this normal practice? Can I now walk into the bank and request the receipt since it is in my name?

vikram choudhry (owner)     05 August 2013

Dear all,

        i am in need of help from u regarding my educational loan.i will brief t Shortly and hope your best advice..

       I  have taken a educational loan from SBI during the year of 2008 for studies in abroad,for which i have pledged my fathers property worth of 50 lakhs,and due to some personal difficulties i cant repay the loan and it has become NPA,now the bank says outstanding amount is 12.25 lakhs which i feel is too much.and they keep sayinf if u dint pay this week we will publish in news papers with ur photo iam trying to settle the loan by selling a part of my fathers property,but the bank is not allowing time to do that and not co operating me in anyway..i had provided them a letter that i will pay the overdues with in end of july,,they have issued a warning pay it with in 31-07-2013 otherwise action will be taken under SARFESI act.but as of till now i was not able to arrange d money.unless selling the part of land pledged with bank i have no other source,now i am frightened and frustrated when the bank officers will be coming to take possession of my property.i need better advice to get relief from this problem.and pls provide me with a smooth way to handlle this problem..but if the bank gives  me further 3months time i can arrange some money in alternative way.. and avoid my details going public

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