Hi,
My mother bought an apartment through SARFAESI direct auction (not e-auction) in September 2016. She obtained the sale certificate from the Bank and had taken possession of the appartment. In January 2017, a gift transfer was executed to transfer the property in my name. During our preliminary enquiries, we did not get details of any other encumberance or lien on the property. We were tenants in the same complex and we knew there was not other tax or bills pending on said apartment.
In March 2017, we received a notice of attachment on the appartment from a sub court in a different district. On enquiring the case details, I got to know that - the builder of the apartment complex has taken second mortgage with a third party individual (not a financial entity) with the entire parcel of land and proposed building as mortgage. The third party individual has filed a case of default in 2009 and got a settlement order from a district court in 2017 with a schedule for attaching 2 of the apartments - both already sold under SARFAESI. Now we have received an eviction notice from the said district court.
Upon researching, I got to know that SARFAESI auction is always under "as is where is" and "as is what is" condition with no responsibility on the Bank. However does the change from 'caveat emptor' to 'caveat venditor' for the Bank executing the auction apply for this scenario?
I request advice on the legal options I can pursue and possible outcomes?
Is there a valid legal option to negotiate with the third party for a settlement?
