Sarfaesi act

sunny (Querist) 18 April 2016 This query is : Resolved
Dear Sir,

I have a housing loan taken in the year 2010 around 22 lac.
In the year 2013 I had lost the job for almost 17 months & I could not pay the emi & SARFAESI notice was issued as the loan got NPA.However in the year 2014 nov I got the new job & I managed to pay the outstanding emi with interest & regularised the loan account & was paying my emi regularly.
Now in NOV 2016 again I lost my job & I could not pay my emi & the loan account is NPA.Now the bank officials are saying that the same SARFAESI notice will be issued & will take the possession of my house.I have requested them that I will regularise the emi & asked them not to issue the notice.

I have also told the bank officials that I starting my own doing the self employment which will take another 2-3 months to materialise & the revenue starts generating.

Kindly advice me what to do?

Regards.

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Guest (Expert) 18 April 2016
Under which section SARFAESI notice was issued , whether notice was issued under section 14 of Chief Metropolitan Magistrate of District Magistrate.

Or who have issued SARFAESI notice

Guest (Expert) 18 April 2016
If Bank has send notice then it should be under Sec 13 .

So first check and tell who have send notice Bank or DM/CMM

Devajyoti Barman (Expert) 19 April 2016
The bank is doing right.
If the loan a/c becomes NPA it has every right to issue notice under SARFAESI Act.
Your loss of job is no excuse.
So give a written representation to repay the loan or else face the rogours of law.

Guest (Expert) 19 April 2016
Manner in which the crisis should be handled

1) Be aware you have to pay to bank if you delay you are paying more , penalty further interest as per Loan conditions. So economically the point of not paying in time is injurious to borrower on larger economic picture but may satisfy his emotions he has crisis so for insecurity he did not pay. I feel under circumstances try to be regular in payment else you end up paying more in larger calculation. And you develop habit bad habit of financial mismanagement. Now hardly Govt. service so situation is equally same for all so learn to manage finance if job is lost.(This is imp.)
2. When they send notice you should object to their notice properly and take proper help of local advocate so you don't give wrong proof to bank
3. When Bank comes to take possession in SARFEASI act don't give physical possession but they have now a days habit to take symbolic possession and do nonsense , so this too you should be aware
4. I have heard from senior bank take symbolic possession and sell flat to third party to recover funds and third party and borrower have problem about title . Banks are very un-reliable as per my Charter Accountant
5. They can move application to DM/CMM for his assistance to recover physical possession.
6. Any adverse step if taken you have to appeal and contest
7. But bottom line again if you waste time paying advocate , you pay more interest , more penalty better pay some how funds to bank and reduce loan liability when , when loan liability is less bank do generally consider but if liability is more than against NPA they take move
8. Additionally I read some where few days back RBI have given direction to be strict on Banking frauds and NPA . As there is very huge NPA is our country.

Rajendra K Goyal (Expert) 19 April 2016
More delay more complication. Arrange for the money and pay the pending amount.

You can search for a buyer and try to dispose it and wait fresh purchase til situation is favorable.

Dr J C Vashista (Expert) 20 April 2016
Well advised by experts nothing more.

Sarfaesi act

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