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Paresh Narigara   28 October 2017

The Bank has misused the provisions of SARFAESI Act.

A person borrowing a loan from nationalized bank for purpose of purchase of machineries and provided his residential property as collateral security. The bank disbursed loan amount and transfer the fund directly to the machinery supplier by way of RTGS, without permission of the borrower. Then the machinery supplier not delivered machineries and make a fraud. So that, the borrower lost his money and cannot start proposed business. Due to that the borrower is not be able to pay the EMIs and the account turned into NPA. In this case which essential measures should be taken and should not be taken by the bank?


 1 Replies

Siddharth Srivastava (Advocate)     28 October 2017

Your loan agreement is to be examined. If there is any connivance on part of bank and supplier then lodge complaint wth the police. You can also approach court in this regard.

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