1. The law is that since you have taken loan from the Bank which deals with public money, you shall have to return the same with interest at agreed rate.
2. SARFAESI action can not be initiated for taking possession of Agricultural land unless the said agricultural is being used for residential purpose and not for the purpose of agriculture.
3. However, you should have file a S.A. before the local DRT on receipt of the Possession Notice praying for setting aside the SARFAESI proceeding initiated by the Bank.
4. Contact a local lawyer practicing at DRT and file a S.A. if the auction has taken place within one month.
5. Bank has no power to waive any dues if it can be recovered since Bank deals with public money and is answerable.