1) reserve price would not be fixed lower that valuation price

2) bank does not need your concurrence in fixing reserve price

3) make offer of one time settlement to bank and offer to pay dues in instalments

1) the reserve price will be determined on the basis of total loan outstanding in your account and on the basis of current market price and demand, along with depreciation towards the land and building .

2) The bank need not take concurrence from you regarding fixation of reserve price at the time of holding the auction.

3) if the reserve price that is eventually fixed is far too lower, you can approach the bank and seek enhancement of the reserve price or buy the property yourself for that price. You can approach the bank with a proposition to sell the property yourself and adjust the sale proceeds towards the loan outstanding. Ultimately the bank wants to recover the outstanding loan amount with interest. If you are able to facilitate this and still make a profit it is beneficial to both.

4) Give the bank a OTS (One time Settlement) proposition, asking them to waive off the interest and take the principle only from you within 90 days, by which time inform the bank that you will attempt to sell the property/s with NOC from them at Fair Market Price. Bank will consider this and give you ample time.

1) The coop bank had valued the properties 2 years back whilst sanctioning the loan. Can the reserve price to be fixed by the bank be lower than this valuation price?

you should file a writ, under article 227, before the high court for assessment of mortgage security in the context of current market price. court shall give direction and make the bank bound to assess the property on current rate otherwise you can initiate contempt of court proceeding against the bank.

1. The cooperative bank, in order to recover the loan amount may bring the property into auction and may sell it to the highest bidder. As far as fixing up the value shall be at par with the current market value of the property or as per government guide lines value.

2. The bank will not ask your opinion to sell the property at the price which is offered by the highest bidder in the auction.

Due to default in repayment, you have lost the rights in the property offered as collateral security which is now being brought to auction sale.

You can arrange any closely known party from your side to somehow manage to acquire the property by the auction sale.

3. You can file a petition before DRT and also an application to stay the auction proceedings.

However if the bank is initiating action under sarfesi act then you may not have the chance to sell the property on your own even if you seek time.

You may discuss with your advocate about the action plan in this regard based on the prevailing atmosphere.

Hello, Finance institution can fix up the reserve price according to their rules/powers. We have very less possible to question them on reserve price but we need to see the agreement clauses. You can approach court to get temporary injunction on auctioning the property till you get prepared to defend. I need to see the banker agreement to find loop holes to defend ourselves. You can contact me with relevant document.

Thanks,

Adv.Niranjan,

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