• Refund of EMD amount paid for bank auction

I deposited 8,10,300 as EMD amount. However, I didnt fill the form or submitted my KYC. 
On enquiry I came to knew borrower is still paying electricity bill regularly for the said property. So I decided to withdraw my bid prior to auction and asked for refund. However, bank is denying the same?
KIndly guide what should I do as there was no valid contract between Bank and Me without KYC
Asked 4 years ago in Civil Law

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6 Answers

1. Bank accepted your bid and you have paid EMD

2. So contract is concluded between you and bank

3. If you back out then bank can forfeit your EMD as per terms of auction sale

4. Payment of electricity bill by borrower has got nothing to do with the borrower owner being entitled to stop auction of his property

5. Conclusion of contract between you and bank is not dependent on your kyc submission

6. Check advertisement in public notice for auction sale terms

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1. File a recovery suit stating all the facts of your case against the bank.

2. As you didn’t have a written contract but you have deposited your bid amount with the bank and the same has been accepted by the bank so it becomes an implied contract.

3. The bank must have forwarded the terms and conditions of the auction. The same will be applied in your case. As you accepted those terms and conditions and deposited the bid amount.

For a broadened view plz feel free to consult.


Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

issue demand notice

Konda Srinivas
Advocate, Hyderabad
211 Answers
2 Consultations

Not rated

If bank did not provide you with bid id for e auction, then it means you have not bidded in first place

There is no proposal to accept your bid from your side and consequently bank cannot accept your proposal

Thus there is no valid and concluded contract between you and bank

In that event bank is required to refund your EMD

If bank officer is asking for a bribe then this needs to be reported

Issue a legal notice to bank calling upon it to refund your emd with interest. Mark this notice to banking ombudsman and to RBI. Also mark it to police to inform about the illegal gratification sought by bank officer from you

You will have to file a writ petition in high court if no reply is received to legal notice

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

What are the terms of auction notification ? Process u/s 13(4) completed ?

Under whose possession property is at present ?

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

This is my response to you:

1. When you paid the EMD, did you sign any agreement or bond wherein it stated EMD can be forfeited?

2. You have to submit the Earnest Money Deposit for the property along with the required KYC documents to become eligible to bid for the property;

3. Technically you are not eligible to bid for the property;

4. Send a legal notice to the bank since you did not fill any form or the KYC therefore the bid was not made by you;

5. You will also be required to read the terms & conditions as mentioned in the sale notice and auction bid documents to understand the implications of your bidding.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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