Banking law

Querist : Anonymous (Querist) 28 January 2012 This query is : Resolved
sir I was doing garment business about 5yrs back. I availed credit facilities from IOB and as I incurred debts I left the business and went to Australia and taken a job. In the mean time my secured asset(A residential flat)was taken possession and sold by bank for 12 laks but my debt at that time was around 10 laks. On my return I contacted the concerned branch and they directed me to contact Asset recovery management section which sold the flat.But ARM has no knowledge of it and they are directing me to circle office and they are telling me to contact the head office as they do not have files pertaining to this sale and I was told only head office could give directive as regarding the payment of balance amount. I have been running to all these three offices for the last six months to get my amount. sir I want to know with whom does the responsibility rest ARM or Circle office or LHO. Please guide me in getting the amount.

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Nadeem Qureshi (Expert) 28 January 2012
Dear Querist
you should sent a legal notice through a lawyer to the bank official and demand your total loan account detail within the stipulated time with detail of the deposition or sale of flat. one copy of the same should be sent to Banking Ombudsmen.
feel free to call

Raj Kumar Makkad (Expert) 28 January 2012
I endorse the views of Nadeem.

bhagwat patil (Expert) 29 January 2012
The bank cannot take physical possession instead only symbolic possession, secondly while auction bank should inform you for minimum price. There might be n no. of irregularities in this sale procedure. Appoint a lawyer in your area and go for legal course.

Querist : Anonymous (Querist) 29 January 2012
Patil sir,they are supposed to take physical possession only .But in my case as it was occupied by my family members the banks agents threatened them of dire consequences if we dont vacate the place.As I was away my family vacated the place and handed over the keys to the bank fearing eviction.As told by Mr.Nadeem I already asked the bank to hand over the loan account details,but they are pointing fingers towards one another. I dont want to start the litigation as I have to leave for Australia in another two months. I have not explored the possibility of taking the matter to ombudsman. Would the problem be addressed immediately in ombudsman ? Pl help.

malipeddi jaggarao (Expert) 30 January 2012
You have demand for a statement of account from the Branch of the Bank where you had a loan account. They can not redirect you to anybody for this purpose. From that statement, you will know how much amount of sale proceeds are appropriated in the loan account. It is the primary responsibility of the Branch to give you the details of sale, sale proceeds and its appropriation and payment of balance to you. If your account is transferred to ARM, you can contact them directly and seek the details. The best course is to serve a legal notice through an advocate seeking the these details. Once you are satisfied with the details, you can demand for the refund of balance amount from the Branch where you availed the loan. If you are not satisfied, you can seek guidance from your advocate how to proceed against the Bank to contest the sale pointing out the legal deficiencies if any.

Further steps:
Since time is short for you, you can send an e-mail to the Head Office of the Bank complaining the attitude of the Branch with a request to direct them to supply the needed information.
You can lodge a complaint with Banking Ombudsman (go to the site in the net for down loading the application)giving all facts and documentary evidence.

c.p.s. ramachary (Expert) 14 April 2012
Banking Ombudsman cannot excercise jurisdiction over the matter since jurisdiction for deciding such disputes is conferred to DRT. I do not think that you have a case to succeed. Any way your decision not to enter into any litigation appears to be very wise.

Banking law

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