Sarfesi auction - bank is demanding expenses for physical possession

There is no need to pay their expenditure to get possession from the borrower.  You have to pay the expenditure or charges for your auction purchase only.

Hello..

Please answer after getting familiar with rule 9(7) of the sarfesi act.

Rule 9(7) of the SARFAESI Act, which refers to the Security Interest (Enforcement) Rules, 2002, states that when an immovable property is sold under the Act and is subject to any known encumbrances, the authorized officer can allow the purchaser to deposit money to discharge those encumbrances, and then deliver the property free from those known encumbrances to the purchaser; the certificate of sale must also specify whether the property is sold free of any known encumbrances.

This rule allows the authorized officer to manage situations where the property being sold has existing liens or charges (encumbrances) by enabling the buyer to deposit funds to clear them.

The buyer is responsible for depositing the necessary amount to cover the encumbrances and any related costs.

The certificate of sale issued after the property sale must explicitly state whether the property was sold free from any known encumbrances.

Hello kalaiselvan sir ,

There was no encumbrance or charge on the property.

Bank told that symbolic possession is also encumbrance and is asking for expenses incurred by bank to secure physical possession.

Also this all was communicated to us after bank secured physical possession.

Also the section does not grant power to authorised officer. There wording used in the section is "allow".and even if power is granted then bank should have notified us to deposit amount beforehand.

Bank already issued sale certificate in November 2024 and secured physical possession in February 2025.

Please share your thoughts on this .