Open FREE Demat Account

Complete Guide to Bank Auction Process

Bank Auction
Bank Auction

Bank Auction is bit tedious process. In my previous post, Bank Auctions – The Cheaper and Smarter way to buy your dream house i discussed some of the do’s and don’ts related to Bank Auction. In this post, i will discuss the Bank Auction Process in detail. Currently Bank Auctions are hijacked by some agents. Agents charge hefty commission in this whole process. I never suggest to go through agents as the probability of cheating is high through agents. Specially in Mumbai, all my clients prefer to buy bank auction property through agent and willing to pay x% through cash during Bank Auction Process. Desire to buy a property at discount overlook the risk associated with it. As i always suggest that it is illegal to pay through cash in any property transaction. I request all my readers to directly participate in Bank Auction without any intermediaries. Infact recently banks launched e-auctions which is more transparent and convenient.

Why Property is Auctioned?

I know that you all know answer to this Que that property is auctioned because borrower defaulted on payment. Normally bank auction process is initiated when borrower default on 3 consecutive Home Loan EMI’s. A notice is served to the customer to respond within 60 days that why the bank should not initiate a auction of property due to default in payment. Borrower can pay the installments and this notice is withdrawn. Otherwise Borrower can submit his objection within 60 days with justification for non-payment of EMI. In case, no reply is received from borrower or bank is not satisfied with the reply then bank can initiate bank auction process. Once this notice expire after 60 days, bank can auction the property after 30 days.

Steps to Buy Property through Bank Auction

Step 1: Search for Bank Auction Property

This is one of the most painful step as there is no organized data in India. You may find some sites providing information on Bank Auction Property. This information is normally available on chargeable basis. These sites are not updated regularly. The other sources of information are Newspapers, Notice posted in Bank Branch or Notice posted in the Society. You can also check auction notice on website of Asset Reconstruction Company like ARCIL. It is advisable to narrow down your search so that it will be easy to search the property. For easy search, i suggest that instead of paying for search to get complete details, you can search for Bank Auction Property on these online sites. Note down basic details including Bank name and then either visit the bank branch or search for auction notice through banks website / newspaper.

Step 2: Check Property Details

Once you shortlist bank auction property, carry out preliminary check on our own. Check market price of the property, obviously reason for bank auction is payment default but check out any legal dispute, bank auction related details and how can you participate in bank auction.

The biggest problem with Bank Auction is that you will not have get access to property papers before purchase for title search. Banks are not willing to share much information. Sole objective of bank is to dispose off the property. If you are seriously interested in buying the property then it is advisable to hire a lawyer or expert for this process. One important point to check is Balance outstanding of the defaulter. In many cases balance outstanding is much higher compared to Reserve Price. Please check if the property is auctioned at amount below balance outstanding amount then how bank will recover the balance amount. In such scenarios, defaulter has to pay the balance amount but better to clarify. If final bid amount is more than outstanding amount then balance amount is paid to the defaulter by the bank.

Step 3: Physically Inspect the Property

It is advisable to physically inspect the property. Now a days banks have started mentioning the inspection date and time in auction notice. You can visit the site at designated time to inspect the property. In e-auction notice you will find the contact details of concerned officer. It is advisable to contact him and get all the details. Now one good thing is that if bank is organizing physical inspection then it means bank has physical possession of the property. It is always advisable to buy property where bank has physical possession. In case of notional or symbolic possession, winner of bank auction process will struggle to get the possession. After auction bank will be totally non-cooperative. In some cases, it may take years to get physical possession or you may need to file a court case to get physical possession.

Step 4: Submit Tender Form

In this step, you can collect Tender Form and you should deposit EMD (Earnest Money Deposit) along with Tender form. EMD is normally deposited through Banker’s Cheque or Demand Draft. Please check all details in tender form and submit your tender before the Tender Closing Date. Along with Tender form, bank also demand KYC documents. As the time is very short therefore you should arrange all documents well in advance. One of the most common reason for rejection of tender form is incomplete tender form i.e. either KYC documents are not available or Tender form is not filled properly.

Step 5: Bidding

There are multiple ways of submitting your bid. You can submit your bid through bidding form. In most of the cases Tender form and Bid form are one and same thing. In short, you can submit bid through tender form. You have to submit separate Tender form / bid form if you wish to submit multiple bids in “multiple of increase in bid amount”. In some cases, Tender form is submitted physically and bid is submitted online through separate Bid form. Competitive bidding is allowed by bank in certain cases among the bidders to increase the final bid amount. In e-auction, you can bid multiple times during the window of e-auction. There is no standard bidding process except for e-auction. It is at the sole discretion of the bank.

Step 6: Auction Date

On auction date, visit the site / bank / auction venue to check whether you won the bank auction or not. If bids are submitted through tender form / bid form then bank will open all the eligible bids in front of all bidders. Highest bidder is declared winner of bank auction. If you win auction then you need to deposit 25% of the bid amount within 24 hours including EMD deposited with tender form. Balance 75% of bid amount should be deposited within 15 to 30 days from the date of bank auction. If you are planning to avail Home Loan then it is advisable to apply for Home Loan from the bank which has auctioned the property. Normally home loan is risky proportion and most of bank auctions are closed without Home Loan. Banks are not willing to lend on foreclosed properties. I will not suggest to depend on Home Loan for such properties because of tight timelines.

Step 7: Sale Certificate

After the balance 75% payment is made. You will receive Sale Certificate from Bank but title transfer is incomplete till you register sale certificate in sub-registrar office

Step 8: Register Sale Certificate in Sub-Registrar office

You can register Sale Certificate and should insist on inclusion of defaulter as confirming party as i explained in my previous post on Bank Auctions. The sale certificate should be signed by the authorized bank executive at the time of property registration.

Important Points related to Bank Auction Process

1. Bank Auction is scheduled after 30 days from the date of Auction notice. If defaulter pay the money to bank in between then bank auction process is cancelled.

2. If you win the bank auction and do not pay balance amount within specified period then your entire paid amount will be forfeited by the bank.

3. Properties auctioned by PSU banks are cheaper compared to properties auctioned by Private banks.

4. Last but not the least, Please avoid aggressive bids during bidding process. To take care of this point, you should have fair idea of current market price of similar properties.

Copyright © Nitin Bhatia. All Rights Reserved.

Subscribe
Notify of
148 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Santosh K
Santosh K
9 years ago

Dear Sir,

I have read both your articles on buying auctioned properties with great interest and must thank you for the valuable insights.

While you have constantly recommended that one should not take the property agents route as it is probably a mafia network. Request your inputs on the following case :

I have approached a property agent in Thane area for an auction property, they have said that the cost of the property is lets say 50 lacs (all inclusive, of agent commission, registration and stamp duty charges, society charges and other miscellaneous charges) I need to submit one Demand Draft in the name of the bank as EMD for Rs 2.5 lakhs and one cheque in the name of the agent for Rs 2.5 lakhs which is their commission. Once this is done they will submit the same to the bank that I have staked a claim to the said property. The bank on receiving the EMD will intimate the current property owner that he has 15 days to clear the dues and get his property back, failing which it will be sold to me. If after 15 days the original owner does not do the needful, the bank will let me inspect the property and let me take a call if I still want to purchase the property. If I say no the EMD and the agency will refund me the money, If I say Yes, then the bank will ask me to pay 25 % inclusive of EMD on the 16th day, and balance within another 15 days.

Note: The auction with the said bank is long over almost 2 months before. I called up the bank and confirmed that the auction for the said property was over. So my question is how does this nexus between the agency and bank work and in this case is it safe to pursue buying of this property.

Sincerely
Santosh

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Santosh K

It seems to be fraud case, the process shared does not work as explained to you. You may check comments on my other post on bank auction. People lost their money by following similar process.

Santosh K
Santosh K
9 years ago
Reply to  Nitin Bhatia

Dear Sir,

Thank you for your valuable advice I will decline from going ahead with the same.

Sincerely
Santosh

Nick
Nick
9 years ago

Hello

I have a small question in mind

1. Say I have won the bid and also paid the 1st 25% to bank do they provide any letter for proof
2. After paying the 25% and wining the bid is there any way that the old owner can withdraw properties by paying the dues (and bank say that they will pay us back the money what we have paid by us)

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Nick

it depends on case to case basis and under which act, the property is auctioned.

R.SUBASH
R.SUBASH
9 years ago

I had purchaesd property from SBI KARUR IUNDER SARFEASI ACT 2002) THE LAND WAS SHORTAGE IN 507.75 SQ FT. So,many times complaints to bank .but I cannot received any response from bank . I conduct the Munipal Surveyor he told the property was purchased from the bank. So.you are conduct the bankl. how can recover this land.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  R.SUBASH

The bank auction property is sold on “As is where is and What is there is” basis therefore nothing much can be done. You can appeal to DRT.

mukesh
mukesh
9 years ago

there are encumbrances on the property as some buyers had paid for the property before the borrower of loan mortgaged it to the bank and defaulted. Whether the bank of its own liquidate the encumbrances out of the sale proceeds it receives from auction sale or the buyers of the property have to sue the bank .

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  mukesh

Buyers can appeal to concerned authorities to include them as the party to whole dispute.

Mathew
Mathew
9 years ago

I read your both articles.

I had identified a plot under e-auction. The auction is done by DRT(HDFC Bank). The property is owned by Guarantor.

1. Since, the guarantor is known to us we just checked with him. As per the guarantor, he filed a case in the High court , telling that the bank should auction the borrower property first then only his property should be auctioned. Guarantor tells he will get the case in his favour. As per him, the borrower took loan from two banks for the borrower property with different title deeds, so bank cannot recover from the borrower, and hence the bank put the guarantor property for auction. We checked the High court website and find the case is pending before HC against DRT. HDFC Bank people tells dont discuss with guarantor, he always tells it is before court. Can we go ahead with this auction??. If we purchase whether any problem in getting possession. ?

2. Since the guarantor is known person, he is ready to sell to us at higher rate than the bank auction rate, we need to pay him advance for loan amount, and balance after registration. But the price asked is higher by 40% than the bank auction rate. Whether negotiating with him will be okay?any legal complications?

Kindly guide me, whether we go ahead with bank auction or better to negotiate with the guarantor.

Thanks

Mathew

Kumaran ramasamy
Kumaran ramasamy
8 years ago

I could not understand the safaesi act below, Can u explain simple ordinary way?

(7). Where the immovable property sold is subject to any encumbrances, the authorised officer may, if he think fit, allow the purchaser to deposit with him the money required to discharge the encumbrances and any interest due theron together with such additional amount that may be sufficient to meet the contingencies or further cost, expenses and interest as may be determined by him.

(8) On such deposit of money for discharge of the encumbrances, the authorised officer may issue or cause the purchaser to issue notices to the persons interested in ot entitled to the money deposited with him and take steps to make the payment accordingly.

(9) The authorised officer shall deliver the property to the purchaser free from encumbrances known to the secured creditor on deposit of money as specified in sub-rule (7) above.

(10) The certificate of sale issued under sub-rule (6) shall specifically mention that whether the purchaser hase purchased the immovable secured asset free from any encumbrances known to the secured creditor or not.

Also explain below, which is more helpful for me to make further action against bank

if sale certificate for immovable property issued by bank is not as per Appendix-V [Rule-9(6)],
what can do?

Nitin Bhatia
Nitin Bhatia
8 years ago

It is not feasible to explain on this forum as it require detailed explanation with example.

Kumaran ramasamy
Kumaran ramasamy
8 years ago
Reply to  Nitin Bhatia

Thank you for your response. However, your reply on above forum, more valuable to me. Since, Now I am in do or die situation.

The above situation, who is compete responsibility of encumbrance rests whether buyer or bank.

Nitin Bhatia
Nitin Bhatia
8 years ago

It rests with Buyer.

sukhram
sukhram
8 years ago

Dear Sir, I need to know what action I can take if an agent is trying to hide or ignore my calls. I have deposited EMD of 2.05 Lakhs for auctioned property in Mira Road, Unique Horizon. It got almost one year since I made payment. Agent had asked that this is back door work thus documents would be handed over only at the time of registration. in between he demanded more money so that dues can be paid to accelerate the process. Total money paid is 3.55 Lakhs. Now he is just trying to buying more and more time but I could not see any work on the surface. Please advise how to cope with the situation.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  sukhram

As i mentioned in my other comments and post that buyer should directly deal with banks as the 3rd party agencies are not authorized. You may file a police complaint against the agency.

Syed
Syed
8 years ago

Hi Nitin,

I have bid online for a property on 9th of Nov.’15 and there was no successful highest bidder by the authorized officer/bank. I have called up the recovery manager in this context, he said we will have the notification soon, then it was the day of Diwali(Public Holiday) called the recovery manager, he confirmed the next day it will be confirmed.I emailed them as well, till today nothing came through. I grew suspicious and try ringing up the branch manager who confirmed that the defaulter has paid all the amount on the day of auction and advised me to cross check the same with the recovery manager from the regional office, who gave contradictory facts that the defaulter has appealed to the high court and got a stay and paid 25% of the bid amount and said he will pay the rest of the bid amount ( as in my highest bid) and has 5 more days to go. Recovery manager said that if he doesn’t pay up the rest of 75% I can pay the whole of it and get the property registered. I don’t know who is playing this. How could court give him a relief on the same day of the auction and suggest him to buy back the property at a price what I have successfully bid for? In the past this defaulter has convinced the bank authorities to call off the auction on the day of auction by paying in bits n pieces assuring them he will pay. I have taken an insta loan from HDFC to payup the 25% on the immediate announcement of successful bidder.

Shall I Pay the 25% tomorrow and the rest of the 75% well within in the 15days timeline, despite of the fact that bank never announced me as the successful bidder, its only the online website that shows the results in my favor. Neither they sent me a notification (except from the auction website that congratulates me for it and hints me to wait for a confirmation from the authorized bank officer)nor they have announced that the auction result isnt confirmed yet or being put aside for some reason.

What do you suggest? Thank you in advance

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Syed

I suggest you to follow the process as highlighted online till you receive written communication from bank that bidding is cancelled or there is a stay from court. You can pay balance amount as per timeline else you carry risk of losing amount already PAID. Your money is 100% safe with the bank. At the same time, you can raise a ticket on online auction portal that you have not confirmation from bank officials. You should not be worried about the actions of defaulter.

Syed
Syed
8 years ago
Reply to  Nitin Bhatia

Thank you Nitin,will post you on this.

Shashi Kanth
Shashi Kanth
8 years ago

Hi Nitin,

Is it possible to withdraw EMD before auction. After depositing 10% of the amount as EMD, we came to know that said property is in litigation. Interest thing is that, their was no bidder except me. I am not interested in participating in auction, it’s going to be on 19.1.2016 thru State Bank of Hyderabad. is my EMD would be forfeited if I am not participating in auction? Please advice, Thank you in advance.

– Shashikanth, Hyderabad

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Shashi Kanth

It depends under which act the auction is taking place. Usually, the EMD is forfeited if you don’t participate or proceed further.

Mukesh
Mukesh
8 years ago

Haha banks do not show any litigation and sale the property , They are not at all transparent. They fool so it is cheap in online

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Mukesh

They have their own limitations and not obliged by the law to do so :)

Karthik
Karthik
8 years ago

Hi Nitin,

We have purchased an actioned property from Indian Bank but while registration, we are asked to register 33 Lacks more of property value from the amount we purchased. Please advice. Also will bank’s Recovery department help us in registration process?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Karthik

It seems guidance value/circle rate is higher than auction value therefore registration is done at higher value. In this case, 33L will taxed to you as “income from other sources” as per your tax slab. The bank will register the sale certificate in sub-registrar office.

RITESH KUMAR KESHRI
RITESH KUMAR KESHRI
8 years ago

I HAVE PURCHASED HOME IN 985000 IN MARCH 2015 AFTER SUBMITTION OF TOTAL AMOUNT I GOT SALE CERTIFICATE BUT PHYSICAL POSSESSION TILL NOW NOT GET
DC HAS GIVEN ORDER TO BANK FOR DEPOSITE THE AMOUNT OF FORCE & MAGISTRATE BUT BANK IS DELAYING TO SUBMIT AMOUNT FROM 2 MONTHS WHAT SHOULD I DO
I CAN TAKE ACTION AGAINST BANK
BANK HAS PHYSICAL POSSESSION LIABILITY OR NOT

RITESH KUMAR KESHRI
RITESH KUMAR KESHRI
8 years ago

its central bank case

Nitin Bhatia
Nitin Bhatia
8 years ago

The property can be auctioned through Symbolic Possession and it is always mentioned in the auction notice & other documents. Bank has NO responsibility to obtain physical possession if it declared and certified at the time of auction that property is under symbolic possession.

PT Ramesh
PT Ramesh
8 years ago
Reply to  Nitin Bhatia

Sir, I defaulted on home loan and bank took physical possession of my flat which I fully cooperated, since I was not given much time, I could not remove the entire furnitures, A/c and various other fixtures. Now bank has auctioned the flat. Now, I want to know what happens to all those items which are in the flat. At the time of possession, they had prepared inventory list but missed out many interior works like kitchen cabinets, wood works etc, will I get value of interiors done ?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  PT Ramesh

Unfortunately NO. The property is auctioned on “As is Where is & What is There is Basis”. You should have removed your belongings.

Sudheer prince
Sudheer prince
8 years ago

HELLO SIR,
I HAVE PARTICIPATED IN E-AUCTION BY SBH HYDERABAD ,IN THAT I WAS THE SUCCESSFUL BIDDER ,I HAVE PAID 25% OF THE LOAN AMOUNT ,FOR REMAINING 75% I WENT THOUGHT THE LOAN IN THE SAME BANK,BUT UNFORTUNATELY IT WAS REJECTED BECAUSE THE LEGAL OPINION IS NOT CLEARED BY THE ADVOCATE OF SBH PANEL, AS WE THE COUSTMERS HAVE WAITED FOR SOO LONG TIME, AFTER 30 DAY THE BANK HAS SAID YOUR LOAN IS REJECTED AS THE PROPERTY IS NOT HAVING MUNICIPAL PERMISSION, I HAVE ASKED THE BANK AUTHORITIES ,THEY WHY YOU PUT AUCTION ON THAT LITIGANT PROPERTIES AND MISGUIDING PEOPLE WITH MENTAL TENSION AND AGONY ?? THEY GOT AGGRIEVED AND SHOUTED ON ME AND SAY YOUR TIME IS LAPSED AND GOING TO FORFITED THE AMOUNT WHICH I HAVE PAID ,THEN I RAISED MY VOICE AND FINALLY THEY AGREED TO PAY 25% TO MY ACCOUNT..I WANT TO BOOK CHEATING CASE ON THE BANK AUTHORITES , PLEASE GUIDE ME TO DO SO??

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Sudheer prince

The bank auction property is sold on “As is Where is & What is There is Basis”. If bank is willing to refund 25% then there is NO basis to file a case of cheating.

Ujjwal Kumar
Ujjwal Kumar
8 years ago

Hello Sir,
I am looking for a builder floor in Delhi.The concerned builder had purchased it from the SBI Bank in auction.Please guide me related
this whether I should really buy this, Is it really safe .What all are the problems or disadvantages that I might have? Please share your views regarding this.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ujjwal Kumar

If the proper process is followed during auction and there is no litigation against property then you may purchase. Normally such properties are sold at discount of 15% to 20% against market rate therefore you can negotiate accordingly.

Am!t G $het
Am!t G $het
8 years ago

Hi! Sir,
My family has a many ancestral properties, We took a housing loan on a property, for loan it was divided into 2 share(son) instead of 5(Son’s & Daughter’s) after some years my aunt asked for her share she went to the court for partition and suit was pending. after 1 year a guy (lets call him) Mr, “Shit” a relative took that property from my uncle by cheating while purchasing the property he didn’t even gave publication in News paper and the property card is not separate and the position is under my uncle. While purchasing the property my uncles son’s were major/18+ and they have filed a suit on that property saying that Mr Shit has cheated them. This suit is pending till now.
He took a loan from a union bank by giving some bribe to them coz Bank Authority(Advocate) faked the bank on legal advice,
1) The partition suite was pending within the ancestral family.
2) Mr, Shit didn’t even gave paper publication after purchasing the property coz his intention was to cheat.
3) Property card was not separated, in one card there were 2 holders name and the loan was passed only with 1 person(holder) sign.
4) The property is under my uncle possession.
5) There is a Housing loan on that property much earlier and still running.

Recently The court ordered a judgment on partition suit that all the property should be divided into 1/5 share.

Now Mr Shit is not paying the EMI so the bank Mgr is saying that he’ll auction that property.

Please Guide me How to stop the auction in any way. We are very much attached to our ancestral property.
Please Help Me.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Am!t G $het

You may approach the court and take a injunction order against auction. You along with all other owners can file case of forgery and fraud against Mr S for mortgaging the property whose title was not clear. Depending on the case, you can also make bank as a party in collusion with Mr S. You also need to check the role of your uncle as he can be dragged in this case.

tripathi anil
tripathi anil
8 years ago

Hello Sir

I was on process to buy a home (19 lacs) through SBI E Auction
Where in start I deposited 1.8 lacs
And after bid got confirm I again deposited 4.7 lacs but later rest amt.12.5 lacs I failed to deposit on time
After bank deadline i got a latter from bank with 1.8 lacs cheque and mentioned that rest money 4.7 lacs is forfeited

So is there any legal way to get back my money 4.7 lacs from bank
Pls forget my grammar mistakes

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  tripathi anil

I doubt. The amount is forfeited by the bank if the successful bidder backs out.

sharath
sharath
8 years ago

Hi Sir,
I am planing to buy a property in Bangalore. The present owner has purchased in auction done by Sundaram home finance. He is not having sale certificate instead he has sale deed executed between him and Sundaram Home finance. My Lawyer advice, is to not to buy this property as he is not having registered sale certificate and we might end up in problems with the bank defaulter.

can you please suggest me if we have any alternative in this deal ?

Regards,
sharath.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  sharath

You need to check under which act the property was auctioned. Normally the sale certificate is registered in sub registrar office.

Nitin Bhatia
Nitin Bhatia
7 years ago

Seems to be some foul play from bank’s end. If it is PSU bank then you can file RTI application and seek clarification from bank i.e. why auction was cancelled and on what grounds your money is forfeited.

If the bank is private bank then you can submit written complaint and seek clarification. Take ack of your complaint. Also check under which act bank conducted auction & whether due process was followed or not.

Kumar Rohit
Kumar Rohit
7 years ago
Reply to  Nitin Bhatia

Dear sir as stated my money is been forefited on ground for non payment of balance 75% due to any non confirmation by bank …also I came to know that the negotiation was going on .and also later I came to know that the property in question was a lease hold houseing board property so I didn’t deposited the rest amount.and the bank forfeit ed my money.nw when even the browwer paid his all dues and got noc for the same.The bank has kept my money forfeited and nt return ing it .please help an guide

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Kumar Rohit

I have not seen all documents therefore my suggestion is only based on info shared. It seems someone misguided you on entire transaction. Just to share that sale deed can be executed for lease hold property.

Once the auction is cancelled, bank is free to negotiate with the defaulter. A successful bidder cannot withhold payment on the grounds that bank is negotiating with the defaulter.

I am sorry to say that Prima facie, your case looks weak and probability of refund is low until your lawyer find some loophole in the auction process.

Dnyaneshwar
Dnyaneshwar
7 years ago

Dear sir,
I have participated in bank e auction through website,I did not inspect the property(N. A. Plot) before submition Of bid cause their inspection of property date was already passed, I have paid Emd 5 days before auction and on auction day I was only bidder, so I bid on reserved price, asuming I am the only bidder I paid rest amount to make it 25%of sale price on next day. Now I have gone through the documents of property its disputed and case is in court, Bank on its notice to sale through auction menstion property on” Physical possestion “but now I went to see property but Bank not able to show where is property. there are more than 2-3 thousand plot but no boundry or demarcation I scare to Proceed further I have already paid 25% emd was 15%. Please guide me can I get any refund. Can I file any case against bank

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Dnyaneshwar

The amount paid is non-refundable if the auction is under Sarfaesi Act. As bank has mentioned physical possession in auction notice then you should request the bank to share the details and you may verify whether bank has physical possession or not.

As far as legal dispute is concerned, nothing much can be done as the auction property is sold on “As is Where is & What is There is Basis”

ashish
ashish
7 years ago

sir
will you please share format copy for sale certificate

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  ashish

My apologies. I don’t have a draft/sample of sale certificate.

Pavan
Pavan
7 years ago

Sir,

Here is my story. I have participated in SBI bank e-auction (SARFEASI ACT 2002)and I am the highest bidder. Paid 25% of sale price same day. After 5 days, contacted the bank manager to pay off the remaining 75% and he informed that the borrower (The bank has 3 properties of the borrower for E-auction and I have bidden for one of them) approached the court and court has sent a notice to bank asking to hold the registration. When inquired about my 25% deposit, the manager asked me to payoff the remaining 75% else the 25% will be forfeited. He assured the case will be cleared off in a week or so. I went ahead and did the whole payment. He also said the borrower has already been to court last time and has given a chance to payoff the debt, but he didn’t. So in worst case if he does payoff the whole amount the bank will return back my 100% deposit. It has already been 3 months now and the case is still in court with judgement getting postponed.

Question 1: Is there a way to withdraw my interest in the auction? I don’t want to proceed further and wait for it. Even the bank is not sure how long its going to take.

Question 2: Even if I get the property and get it registered. What if the borrower approaches the court again for some reason? will I still need to deal with the hassle of running around courts again?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pavan

You have not mentioned whether you received any communication from bank after you deposited balance 75%

Pavan
Pavan
7 years ago
Reply to  Nitin Bhatia

We are following up with the bank every week and the bank says the case is for hearing for a date next month. It got postponed for a couple of times since last three months and the bank is still holding the whole 100% which we paid

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pavan

You may submit a written application with the bank to handover possession and register sale certificate as you have already paid 100% amount. Take acknowledgement from the bank.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Hello NitinSir,

Mine is the same case, i have sale certificate but due to the stay they are telling us to wait for the court order, It may take years! Who knows? What do we do now?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

Is sale certificate registered in sub registrar office?

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Sir, I have one question, If in their terms with in 15 days if we do not pay the payment they forfeit our 25% money. There is no condition from their side? Is it the legal thing, they can’t refund the money?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

It is legal. The EMD is forfeited.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Pavan

Hi Pavan, Mine is exactly the same case. Did you find any solution to this? Do you think i can file a legal complain? against authorities?

Nitin Bhatia
Nitin Bhatia
7 years ago

I already answered your queries. The auction property is sold on As is Where is & What is There is Basis. Therefore, bank does not ensure that property is free from encumbrances.

Asfaque Ahmed
Asfaque Ahmed
7 years ago

Sir ,
I have participated in bank e-auction and became the highest bidder i deposited the EMD plus the amount total constituting 25% of my BID. However, the loan defaulter went to high court and then the bank to supreme court. The case is pending since 2 years. Everytime on my request for my withdrawal of deposit, bank suggests to wait for next hearing. What should I do to get my money back

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Asfaque Ahmed

You can send legal notice to bank and ask for refund as bank failed to complete the auction process.

Aj
Aj
7 years ago

Respected Sir,

Can a bank auction assets of a company under liquidation?

Thank you,
Aj

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Aj

Yes, bank has every right to recover their dues even if the company is under liquidation.

Ekta Shah
Ekta Shah
7 years ago

Hello Sir,

I participated in the E auction, by SBI. Paid the 25% and the remaining 75% on time. Bank has the possesion of property but there is some stay, So it is getting delayed, no one has answer when it will be cleared. What should we do?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

If sale certificate is not registered then you may request for cancellation and refund of money along with interest rate.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

But the authorities are straight away saying that in any case that is not possible. Refund is not possible. We have received sale confirmation advice but not sale certificate. The authority says if they issue Sale Certificate they have to do property deed in 15 days

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

You submit written request and mention that bank has misled you on entire issue. As bank failed to register the sale certificate within stipulated timeline thus it is deficiency of service from bank’s end. Request them to refund the amount along with 18% interest.

If there is no action on your request then send 2 reminders. Still not action you may approach consumer court and seek refund + compensation from bank for deficiency in service.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Now they are saying they are ready to do property deed, They are not giving anything in written, I have emailed all the authorities about this issue but no reply since 15 days. The SBI lawyer and SBI manager are calling and saying we will process in this week, we have filed petition, and something CWR and whatsoever. And i feel due to emails they have pressure and they are doing the deed because of the pressure. I donot want to get into any problem. My question is, 1. SBI authority does property deed, Can there be anything wrong? any catch? 2. After the deed can the defaulter file any case against us? 3. What are all things we have to take in written from SBI to be safe from later litigation

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

1. You should not execute sale deed if title is still not clear.
2. No. You and defaulter does not have any direct legal agreement. He can make you a party in his legal fight against the bank.
3. Bank auction property is sold on “As is Where is & What is There is Basis”. Therefore, there is NO safeguard from bank’s end to the successful bidder. You may insist that defaulter can become confirming party in the registration of sale certificate.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Thank you sir,
1. I did not understand the second point. My question is, We get property deed and everything from bank. In future is there any case where defaulter directly file any case against us?
2. As it is been one month, and there is not a single email reply from SBI, Can i ask for refund? In what cases they give refund? We are under extreme financial pressure. We do not want the property, Is there any way where we can request refund from bank? or any authority.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

1. Defaulter cannot directly file any case against you. He can file a case against bank and since you bought from bank therefore you can be made party in such a case.
2. I already answered that you should approach consumer forum for refund.

Ekta
Ekta
7 years ago
Reply to  Nitin Bhatia

Hello Sir,

I am eagerly waiting for reply, as my 100% money is block. They have not issued sale certificate. I do not understand why the authorities are denying to refund money.

MJ
MJ
7 years ago

Hi Nitin Ji,

Thanks for all your help..

I purchased a property in bank auction 2 years back and the same got registered (sale certificate issued) in 2014 Oct. This is an empty land with semi constructed building.

After 2 years of struggle with collectorate and bank, the collector issued the order to provide physical possession of the property to DRO. DRO has to come and provide the possession to the bank and it was mentioned in the order to take action by June 30, 2016. But even after 3 months and close follow up, the DRO is not giving possession and simply saying this week and next week.

There was a DRT case filed by the borrower and the case was reserved for in our favor on Aug 24, 2015. But even after 1 year, the DRT judge has not passed the order yet. But there is no stay or anything provided to the borrower also.

1. What are my best options against the DRO to get the possession done? Can I simply use the collector order and take the possession as the property is empty?

2. What other other options I have against the DRT to get the order passed? This is ridiculous that DRT is taking such long time to simply pass the order.

Your timely help would be really appreciated. I am really frustrated with our system for having so much hassles for legally buying a property.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  MJ

1. It depends on the wording of the order. If the DRO has to provide possession and if you take possession on your own then it will be illegal occupation.
2. You may file RTI application to check the status i.e. why there is a delay.

MJ
MJ
7 years ago
Reply to  Nitin Bhatia

Thanks again for your reply. It is worded to give possession by the DRO within Jun 30, 2016 but not happened so far. The bank and we are following it up for 4 months and he set 3 dates so far and never showed up to the site and still giving some excuses. I am exploring to see if, I can file RTI to expedite this.

1. When we registered the property with sale certificate in Oct 2014, it is worded as the bank has given the physical possession already. As the property is an empty land, can I use this as a measure and take the possession and let the bank deal with consequences? I have all patta/chitta, property tax, EB, water tax in my name for last 2 years.

2. Can I sue the bank in DRT/HC to get financial remedy for 2 years delay of not handing over the possession?

3. What is our best option with DRT as the judge has not passed the order for more than a year? (Expected to come in our favor and no stays/interim granted to the borrower as well)

MJ
MJ
7 years ago
Reply to  Nitin Bhatia

Hello Sir,

Thanks again for your prompt response..

It is worded to handover possession to bank by DRO and no other conditions. Importantly, it had a deadline of June 30, 2016 for DRO to do this but he did not do any action despite severe follow up (giving some excuses). I will explore to file an RTI against the DRO & collector.

I would appreciate your opinion on the following as well.

1. Can I move against bank for financial remedy and a solution for the 2 years delay to handover the possession in HC or DRT?

2. Bank issued sale certificate (and registered) with mention of handed over physical possession to me. Based on this, can I take the possession of this empty land and let the bank deal with consequences(if any)?

3. What are my options against DRT not passing the order for more than a year? (No stays or interim orders as well but reserved for order which is expected to come in our favor).

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  MJ

1. Yes you can
2. If bank mentioned physical possession then you may takeover physical possession but it is subject to other terms and conditions.
3. I have not seen documents therefore cannot comment.

R.SUBASH
R.SUBASH
7 years ago

I had purchased property from SBI as on 11.12.2013. After settled the amount SBI delivered the part of the area. How do recover the balance area from SBI. The news paper advt and SBI Er”s Report clearly state that the the property possession is taken by SBI. but others occupied in the area (Building) Madras High court direction through Karur Taluk REvenuse inspector report also said this area is by next house owner (507.75sq.ft)-R.SUBASH, KARUR

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  R.SUBASH

You have not mentioned whether SBI mentioned symbolic possession or physical possession in auction notice.

Dany
Dany
7 years ago

Hello Sir,
Trust every thing is fine at your end!

I purchased a property from SBI through SARFESI ACT just want to get answer’s of few QUESTIONS

> I read it some where that there is no such claws of sealing a property on the basis of SYMBOLIC POSSESSION (means bank can’t sell a property under SARFESI ACT till its not having the PHYSICAL POSSESSION ) ! IS IT TRUE ?

> Till what time i should wait for the bank to get the Physical possession ?

> what else i can do in this case?

The PROBLEM is that i have take loan for this property and the installments are now started and i can’t rent the house as i am not having the physical possession.

Please help me with the best suitable solution.
Awaiting for your response

With Warm regards,
Dany K

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Dany

1. It is not true. A property with symbolic possession can be auctioned
2. It depends on case to case basis. A bank may obtain physical possession in 30 days or may struggle for 30 years. Recently there are some amendments in this regard. Please check my following post
https://www.nitinbhatia.in/real-estate/bank-auction-property-sarfaesi-act/
3. Please check my other posts on bank auction. I have shared all the do’s and don’ts.

Nisarg
Nisarg
7 years ago

Hello sir,

Few days back i took prat in e-auction conducted by PSU bank. I made payment of EMD money and 25%, within time. After said payment i come to know that actual plot size is small than mentioned in bank’s public advertisement, even urban development road is passing from same plot.

Now i want to cancel the my bid and want my money back. What are the possible actions i can take in order to recover my money back?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Nisarg

You can request cancellation of bidding process on the grounds of misrepresentation of facts by the bank.

Nisarg
Nisarg
7 years ago
Reply to  Nitin Bhatia

Thank you for your reply.
Bid cancellation request already submitted but bank is denying to refund the money… Atleast bank should refund 25% which I already paid

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Nisarg

You may approach court for relief.

Ekta Shah
Ekta Shah
7 years ago

Hello Sir,
The authorities from SBI has sent us Sale certificate exactly after a month of full payment after asking too much. Now what about the possession and property deed. We had to put a lot pressure on them for sale certificate so the authorities are not responding us. We dont know what to do? Who do we ask for the physical possession?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

You can insist on registration of sale certificate in sub registrar office. There are some changes in SARFAESI Act recently and you can get physical possession in 30 days with the help of District Magistrate. Please check point no 1 in my following post
https://www.nitinbhatia.in/real-estate/bank-auction-property-sarfaesi-act/

Rajesh Vaidya
Rajesh Vaidya
7 years ago

Sir,I want know the submission process of e auction on internet by bank,can you help.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Rajesh Vaidya

You may wait for bank’s notification. The bank will provide all the details.

udit kanoria
udit kanoria
7 years ago

Hello Sir,
SAMB branch of SBI has failed miserably in handling over the physical possession of the auctioned property to the highest bidder.Its been more than 2 years since the full payment has been made to the bank.I have written several letters to the bank authorities including Chairman of SBI, Mumbai asking for immediate payment of interest on the auctioned money.I have a copy of those letters with banks’ acknowledgement as well.The bank has called for handling over the physical possession of the plot but unable to do so citing several reasons.One of them being that the bank was successful in vacating the property from its owners but the owners’ belongings are still kept there and they cannot hand over the possession until those belongings are given back to them.Therefore the property is currently seized by the bank.My letters to the bank have totally been ignored as I haven’t got any reply for those.I have also filled a complaint with Banking ombusdman and consumer court againt SBI. Could you please help me decide my next course of action ?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  udit kanoria

Please check my following post on recent changes in SARFAESI Act. The bank can take possession with the help of district magistrate. But after recent amendment, this process will be completed within 30 days by the district magistrate without the intervention of court or tribunals.

https://www.nitinbhatia.in/real-estate/bank-auction-property-sarfaesi-act/

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Hello Sir,
The bank authority has completely played a trap. They issued sale certificate of date 1/10/2016 and gave us on 20/10/2016, and now they are saying meanwhile the defaulter has filed affidavit and now the property is under stay or Patna high court. Also they have written this statement: Now the according to principle of Lis-Pendes do apply in the case and
proceeding further with the conclusion of sale process might cause further
legal hurdles and multiplicity of legal proceedings.

The bank delayed everything just to justify their point. Anyhow i want to ask for refund. what shall i do?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

I think i cautioned you about this scenario in one of my earlier comments that you should not insist on sale certificate. Please let me know the date on which the defaulter has filed affidavit and date of injunction order by Patna High Court.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

The order came on 7/9/2016 which was not clear about the stay on gujarat property(there are 2 properties mortgagedPatna, Gujarat), full auction amount was given on 16/9/2016, on 17/9/2016 they sent a rough format of sale certificate without any sign or stamp to check the format. and then they stopped responding. we visited SBI branch on 7/10/2016 to check what is wrong and asked for sale certi, they denied to give. Then we emailed RBI, SBI chairman and then on 20/10/2016, they sent email of sale certi dated 1/10/2016 saying they hv already issued. and also said that meanwhile the defaulter has got stay on Gujarat property so the process will take time. Whenever we asked for the detail about what litigations are happening the lawyer simply said its third party documents we can not give. There is some misconduct happened from SBI, and now they are just escaping

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

In my opinion, bank cannot issue sale certificate till the matter is in court. It will also depend on the grounds of stay granted by the court. As i have not gone through documents therefore cannot comment with 100% conviction.

Ekta Shah
Ekta Shah
7 years ago
Reply to  Nitin Bhatia

Sir, i have emailed SBI chairman, RBI ombudsman, and all the concerend authority. But bank official is simply saying we cannot proceed untill the case is in court. they are litrally giving irresponsible answer. We want to take legal action against SBI. Can you guide us for the same. Also none of the authority who is being CC’d is giving any acknowledgement of the email.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ekta Shah

To be very honest with you, the legal case is very weak. Bank Auction properties are sold on “As is Where is & What is There is Basis”. There is no responsibility of a bank regarding title of the property.

Gaurav Ahluwalia
Gaurav Ahluwalia
7 years ago

Dear Sir,

1. I purchased an Immovable Residential Property (Plot) in one of the class – I city of Uttar Pradesh, through E-auction from a Bank (PSU) for an amount of Rs 120 Lacs.

2. At the time of Transfer & Registry of said property, bank informed me about loss of some of the important original documents of the property.

3. In the meanwhile, on the basis of available documents of the said property with the auctioning bank, I applied for loan with one of the branch of the same bank but that branch (of same bank) did not sanction / give loan to me, in the absence of all / complete original documents of the said property.

4. But in my opinion, bank was not in physical possession of required important documents of said property because they never replied to my RTI’s also on this subject (regarding property documents).

5. Bank, then filed FIR with Police about loss of some of the important documents. Afterwards, auctioning bank applied for Duplicate documents and obtained also from concerned U.P Govt. Office.

6. On the basis of Duplicate documents, bank applied for Transfer of said property in my name, after Transfer charges were paid by me.

7. But here also i.e. in concerned U.P Govt. Office, it was noticed that said property is already mortgaged in the charge / name of other bank.

8. Now, since the day of E-auction and till date, i.e. almost 300 days ( 10 months) have passed, Auctioning Bank could not get the said property transferred in my name.

9. As a result of all this, I suffered huge financial losses and physically also, because I could not use the property, the way I wanted to. Presently I am residing in a rented accommodation & paying a rent of Rs 25000/= pm.

10. Moreover said property is lying vacant since then. I have physical possession of the said property. As per govt guidelines, I cannot do any alteration, addition, deletion & new construction etc in the absence of Clear Title / Registry in my name.

Now I request you to guide / advise me further course of action (with which all agencies / offices / authorities) for the following :-

A. Can a bank (PSU) auction any property without having physical possession of all the Original documents of that property?

B. Is this not the responsibility & duty of auctioning bank to get the transfer and registry done in my name?

C. What is the time limit for a bank to get transfer & registry done in my name after receipt of full & final bid amount?

D. How, when & in what manner bank should compensate me for huge financial losses & physically, mental tension, harassment & torture suffered during the last almost 300 days ( 10 Months)?

E. Any other action / point of concern, legally or otherwise, needs to be addressed from my side?

Waiting for your valuable advise / guidance to overcome this problem.

Regards,

Nitin Bhatia
Nitin Bhatia
7 years ago

1. You need to check whether these documents were submitted with the bank by the defaulter or not.
2. Yes but auction property is sold on “As is Where is & What is There is Basis”. Therefore if something goes wrong then bank is not liable.
3. In case title is not clear, property cannot be registered. It is good for bidder only
4. You may approach consumer court or file a civil suit in case of any misrepresentation of facts by the bank

Daya
Daya
7 years ago

Dear Nitin,

We have purchased the property through bank auction and paid the full amount with in 15 days after the auction date. We got the sale certificate and registration after 1 year and got the phisical possession of the property after 1 year of the registration. As per the SARFEASI act, Can we claim the compensation for the delay of issuing the sale certificate and physical possession.

Thanks for your reply.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Daya

You have not mentioned the reason for delay.

Daya
Daya
7 years ago
Reply to  Nitin Bhatia

Reason being litigations in the title deed. We spent some money and cleard the litigations on the property. Is there any clause in the SARFEASI act to claim the compnesation on auctioned properites ?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Daya

You cannot claim compensation as the auction property is sold on As is Where is & What is There is Basis

Daya
Daya
7 years ago
Reply to  Nitin Bhatia

Thank Nitin, On what grounds can we claim the compensation ?. In our case bank has intentionally delayed for the registration/Handover of the property. If the property was handedover me on time, I would have earned around 20 lakhs in rent by now.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Daya

Sometimes there are some legal or operational issues in back-end which bank does not inform bidders. The delay is never intentional as such. First you need to check the real reason for delay you might not be aware at this stage then you will decide next step.

Pawan Jain
Pawan Jain
7 years ago

Dear Mr Nitin , I am going to participate in one of the property ,auction in 2016. two attempt for auction has been made by bank , Which already notified 2013 and 2014 . in later 2014 property was notifed for 10 % less rate . now they are asking for the same price which were there in 2014 ..
queries are
1 what is process of evalution of property . ( no depreciation being calculated ) even though market is low.
2 Do we need to pay Registry charges when we purchase/ register property through E auction by bank , like we do in general case . some one told me , We need not to pay the charges for the bank property , as sale certficate is enough .
3 Loan amt of the previous occupants is quite high almost 40 times of the property . will there be an issue in title and getting housng loan from bank for the said property .
4 As you said in its better to make previous occupants as one party in registry , If the person has gone abroad . so we should with bank ,
5 How to get No obejctions from legal heir of the previos owner , if all has gone abroad.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pawan Jain

1. Bank have their own property valuer or they hire independent property valuer
2. You need to register sale certificate therefore stamp duty and registration charges will be applicable.
3. I don’t think so. I suggest you to discuss in advance to avoid any future surprise.
4. A Defaulter staying abroad is not a valid reason.
5. It is of no use. Legal heirs only come into picture if the owner is deceased.

Pawan Jain
Pawan Jain
7 years ago
Reply to  Nitin Bhatia

Thanks for the reply ,

Last query , How to get Housing loan as no. of banks including Same Bank ( property Possessor ) has denied for the same .

Though one bank has agreed for the same , Can i get papers/copy of papers after putting highest Bid and On the basis of the letter for Highest Bid and Copy of papers can i get bank loan from Any bank . Pl help . Thanks a Lot .

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pawan Jain

If the same bank is not willing to lend then you should be cautious. There is something that bank knows but you don’t know. I will suggest to avail loan from same bank only. If the bank refuse then drop the idea to buy this property.

Asha
Asha
7 years ago

Shri Nitin Bhatia… I entered sale registered deed (satakat) with a party. I paid 20% amount. Afterwards the seller became defaulter. Now the property is under Banks DRT. How i will get my property registered under my name. What will happen to property. Can bank auction it.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Asha

Bank can auction the property as they have first right over the property. I have not seen documents therefore cannot comment with 100% conviction but i suggest you to discuss directly with the bank i.e. what can be done. Alternatively, you can take legal action and request bank to make you a party to whole dispute.

Ritu M
Ritu M
7 years ago
Reply to  Nitin Bhatia

can the bank auction the full property though the mortgaged area is only a quarter, say for example?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ritu M

It is not clear whether the mortgaged area can be demarcated from full property or not i.e. whether it has separate survey no or property tax id.

Ritu M
Ritu M
7 years ago
Reply to  Nitin Bhatia

the mortgaged area can be demarcated as it has separate survey numbers. the issue here is that there was a separate tri-party agreement involving two banks and my friend. in that agreement all three numbers were mentioned. however only one survey number was mortgaged and registered, but now the bank claims that they can auction/recover the entire property based on the agreement they have. is that legal/possible from bank’s point of view? await your guidance.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ritu M

It seems out of 3 survey no’s only one is mortgaged but rest 2 survey no’s were put across as “personal” guarantee towards the survey no mortgaged to the bank. In this case, bank can auction the entire property i.e. all 3 survey no’s.

Ritu M
Ritu M
7 years ago
Reply to  Nitin Bhatia

In the court decree my friends property is divided into three i.e .(A). immovable property land. (B)cows. (C) machinery and vehicles.

But in sale proclamation the property is divided into 3 lots because there are 3 survey numbers. And 1 among this property of 2acers was converted for industrial purpose and the other two are agricultural property . But this converted property is shown as agricultural property in sale proclamation and e auction was conducted by mate net Pvt. Ltd. And when we checked auction details on the website only lot number 1 was put for auction an area of 1.8 acres, but now recovery officer has confirmed the sale of all the 3 property how is this possible ?
Does Bank have rights to sell all the property together when my friends dues are lesser than his property value?
Then because bank had put only 1 property for auction and value showed was of all three property no one came for three auctions but later they reduced value for the reason no bidders
now they got a bidder auction.1.8 acres without transparency in auction and conformed sale of all three property.

Bidder had deposited only 50 percent of cash on 14th day after auction and we got stay on 15th day from high court, later stay was vacated and payment was done after 10 days is that allowed? Auctioner should have made payment within 15 days from auction of property but stay was allowed for them also to pay balance amount but can they take additional 10 days other than the old 14 days after vacation of stay they should have taken only 1 day to make balance payment. Can we challenge in the high court on this grounds.

Another thing is the survey of his property was changed at the time of auction .without showing the new survey number in the sale proclamation can the recovery officer contest auction.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ritu M

I can answer only after going through documents and court order. Prima facie the bank can only auction the mortgaged area.

Ritu M
Ritu M
7 years ago
Reply to  Nitin Bhatia

if its fine and ok with you, can i have your private/personal mail ID to send you the documents.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Ritu M

Just to add personalized consultation is available on paid basis. You can check advisory service section on my website for more details.

Pulkit
Pulkit
7 years ago

Hello sir,
Can the Bank auction the prime property and the mortgage property togather or there are any priorities given to the mortgage property..

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pulkit

Sorry i could not understand what is meant by prime property.

ritu
ritu
7 years ago

Dear Nitin, can the bank auction the full property though the mortgaged area is only a quarter, say for example?

Nagarajan Rv
Nagarajan Rv
7 years ago

Hi Sir, I have knocked down an auction property, and a I have paid all the amount within 13 days of auction, the bank authorised officer came to Subregister office to register the sale certificate, but the registrar refused to register because the parent document from the bank does not consist the building plan approval. Now the bank says that thy do not have any approval papers and has only the parent document of the property. My question is what shall I do now to register the property in my name.and the officer says that even after registering in the SRO he takes back all the document with him for preparing the NOC. Please let me know is this the porocess, and what is that NOC means and wht will be the content (will it be favour and is required for me or the bank)
Thanks

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Nagarajan Rv

You can get copy of approved building plan from local development authority. I am not sure of purpose of NOC.

somnath
somnath
7 years ago

Can Co Operative bank take physical possession of flat after auction from tenant?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  somnath

Yes

Pathak
Pathak
7 years ago

I bought one plot in bank auction, after registration when I went for mutation I came to know that borrower already sold that plot 3years before the auction and done mutation for that. Now bank people are not helping me for anything. What should I do now, I got papers only after paying all my money? Plz give me proper advise

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Pathak

It’s a case of fraud. Please file police FIR against the seller.

Megha Dwivedi
Megha Dwivedi
7 years ago

hello sir, i want to know that if i do not win the auction process, then does bank forfeit the EMD, or return to the bidder as it is ?

pathak
pathak
7 years ago
Reply to  Megha Dwivedi

they return as it is

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  pathak

EMD is refunded back to the unsuccessful bidders.

Bhaskar Chakkera
Bhaskar Chakkera
7 years ago

can a bank sell a property[possessed under SARFAESI] directly to a buyer [without the consent of the borrower] after 3 unsuccessful auction?

Nitin Bhatia
Nitin Bhatia
7 years ago

Yes

Dipak Patel
Dipak Patel
7 years ago

Can a bank auction unclear property?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Dipak Patel

Yes. Many of these properties are disputed only.

Dipak Patel
Dipak Patel
7 years ago

How to get back our forfeited money from bank in case of property is uncleared?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Dipak Patel

The bank auction property is sold on As is Where is & What is There is Basis. Therefore, in my opinion you cannot claim back forfeited money.

ramesh ela
ramesh ela
7 years ago

Dear sir
Greetings! I am Ramesh.R from Tamil nadu and i brought one home through E-auction and i paid 100%(25% EMD and 75% balance) amount to bank 10 days before itself and so far i didn’t receive my sales certificate the proprietor of that land not yet payed the amount so far so please help me what to do thank you

Warm regards
Ramesh.R

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  ramesh ela

You need to check with the bank only.

subbarao
subbarao
7 years ago

Hi Sir,

I am Subbarao from Hyderbad.
I bought a property in SBT e-Auction conducted on Jan-05-2017.
I have paid 25% EMD amount on 06-Jan-2017.
Same bank issued me home loan for remaining 75%.
I paid full amount to bank on 17-Feb-2017.
They have issue me me Sale Certificate on same day.
After the 25% EMD payment and before issuing Sale Certificate SBT branch manager told me that borrower approached court challenging the measures of Bank.
And bank manager told borrower filed case in 2016.
But Bank manager didn’t informed me about the case before participating in the auction.
Now issue is in court.
And bank do not have physical possession of the property.
Bank is insisting me to go for registration and start EMI payments.
I have sent a request to bank asking to do the Registration and start EMI after handing over the physical possession.
They are okay to postpone the registration.
But denying to EMI postponement.
And borrower staying in the house and he is enjoying the rents of the house.

In this case what would be my next steps to request bank to hold on EMI payments.
And to recover the rents from the borrower.

Thanking your Sir,
Subbarao.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  subbarao

The bank auction property is sold on As is Where is & What is There is Basis. Therefore, bank is not responsible for the existing situation. Unfortunately, you have to pay the EMI to bank.

sandeep
sandeep
7 years ago

what stamp duty for property who buy e auction? property in u.p.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  sandeep

The stamp duty will be as applicable for any regular purchase.

Satish Patel
Satish Patel
7 years ago
Reply to  Nitin Bhatia

Sir..means 1 time stamp duty is applicable? I heard that bank will register property first his name and after that to party?? Means in Gujarat only 6% stamp duty is applicable if we buy through direct bank auction??
Thank you

Aakash
Aakash
7 years ago

Hi Nitin,

Can you guide in accordance to the Sarefesi Act, can NBFC Auction the property(earlier a house but demolished to a plot) without the consent of the borrower or without getting a court order?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Aakash

It is possible. Consent of the borrower is not required.

Newbie
Newbie
7 years ago

Dear Nitin ji,
I purchased a semi constructed property in 2014 through SIB auction and registered sale certificate as well. After more than 2 years of struggle, I have the physical possession of the property through district magistrate. I have also put a shed and took control over the property now.

But the borrower moved to DRT (2 years back right after sale certificate was issued) and the case is now pending for final order. I was present in the DRT when the PO decided to reserve it for orders and clearly was talking in favor of us as the bank followed all the procedures clearly and the borrower did not have any valid base.

However, it has been more than 1.5 years and the final order has not been passed yet by DRT. When I reached out to bank they claim the PO is doing this for all the cases as he did not like his job and looking for a transfer. I check the cause list online and he is passing orders once a month or so but 1.5 years for a final order in DRT feels like a very long time.

I am planning to start the construction now as I have invested a huge money.

1. What are my options now to get the order?

2. Can I start the construction based on the belief, as I heard the judge was full in favor of us and borrower’s case was baseless?

3. Can i move to HC and get an order against DRT to pass the order? Will it affect my DRT order because I moved to HC?

4. Is there any other option for auction purchaser to get the status of the case or to follow up in the DRT to know when will the order passed?

5. Can RTI be used against DRT as I am an auction purchases to know the details?

Newbie
Newbie
7 years ago
Reply to  Newbie

Hi Nitin ji,

Can you please help me with my above queries?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Newbie

1. You have not mentioned whether you are party to the case or not.
2. No. It seems the defaulter is waiting for new PO to join
3. The answer depends whether you are party to the case or not
4. You can file RTI
5. Yes

Newbie
Newbie
7 years ago
Reply to  Nitin Bhatia

Thanks ji.. Yes, the defaulter added me to the case and I am also part of this.

So I can move to HC without affecting the case outcome and try to get an order to pass DRT order within stipulated time?

Also, do you think if a new PO joins the case will be re-opened again or the outcome will be different even through the hearing is complete?

Shopping Cart
Scroll to Top