• How to deal with Religare, DRT and ARC given our current Situation

We took property loans from M/s. Religare Finvest Ltd. (NBFC) we were paying them on time
but after missing 2 installments payment they went to collector office to take possession order
which was challenged by us at DRT Court. Uptill now stay was granted by H’ble Court & no
hearing has been done. We have now (01/06/2020) come to know from ROC (MCA) that our
property security papers now sold to one ARC Company on 5 th . Nov, 2019. We have not been
informed neither by M/s. Religare Finvest nor this new ARC company. Our Queries are as
below:

1. How to handle case at DRT? We want more time for settlement & at present funds are
not available with us. So to linger on what tactics to be adopted.

2. How M/s. Religare Finvest Ltd which is also a defaulter with SBI etc & have been merged
with its parent company. M/s. Religare Finvest Ltd can fight their case at DRT? Now they
are no longer the charge holders.

3. How we can negotiate with ARC to collect our property documents?? ARC must have
bought at 50%- 60% discounts.

We were one of the victims by failure of M/s. Religare Finvest Ltd. (Owned by Malvinder &
Shivender Singh now in Jail) They pressurized us to pay loans beforehand & thus approached
Collector under Sarfesi Act, so we had to shutdown our factory operations as there was no
surety for us to hold / run on property as mortgaged to M/s. Religare Finvest Ltd. We want your
advice for the same.

Thanks & Regards.
Anuj Baid.
Asked 4 years ago in Property Law
Religion: Hindu

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12 Answers

File contempt petition in court. Stay was granted by court, sale is illegal. 

If final order passed in your favor, sale will declare void. And just in 2 EMi`s default, possession proceeding cannot be initiated. And 60 days notice mandatory for initiation of possession process.

You only proceed with DRT, no need to negotiate with ARC.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

1) make an offer for OTS 

 

2) agree to pay principal amount in equated monthly instalments spread over 2 years 

 

3)ARC would be fighting the case as Reigate has sold the loan dues to ARC 

4) visit the office of ARC to negotiate settlement 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

When have stay over it than how can it be sold.

1. You can try avoiding appearance. 

2. They will be liable 

3. This would be a pure negotiating deal.

 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. For default of 2 months no loan ac can be declared as NPA and hence there is no question of attachment. The further assignment of the security has worsened the situation at your favour. Bring this to the notice of DRT at the time hearing.

2. In its place the assignee would be substituted as party in DRT.

3. Your remEdy lies in DRT and not wIth the ARC. 

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1.  As per the RBI, the bank should give proper time and offers for the settlement of loan amount.,  on the ground of health and sudden loss etc.

-  As per rule , a Bank or financial institutions initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests , which is in short known as Sarfaesi Act. if the borrower’s account is declared as a non-performing asset (NPA), where repayment is overdue by 90 days, , and the bank has to first issue a 60-day notice to the defaulter.

- If the borrower fails to repay within the notice period, the bank can proceed for selling the mortgaged property .

- Further, before selling the property , the bank has to serve another 30-day public notice mentioning details of the sale,
- Hence if you was paying the instalments regularly , and firstly there was delay of 2 months , then the legal action by the 
Religare Finvest Ltd was against the rule, and you should move an application before the DRT for cancelling the order of Collector , and to give you ample time to pay the arrears of instalments. 

2. Yes, after moving an application they can do so

3. Approach the DRT only for getting a favourable order .

Mohammed Shahzad
Advocate, Delhi
13095 Answers
195 Consultations

5.0 on 5.0

1. Stay should be extended 

2. You can raise ab objection to that effect before the said court

3. You need to formally approach them for the same else seek direction from DRT. 

4. You need to contest the same under sarfesi Act Only

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

There can not be any direct take over possession before giving one month time to repay the loan. 

Further when there is a stay how further transactions can take place. 

The whole story is doubtful. It lacks fulfilling legal procedural requirements . Note that SARFASAI is a procedural law.  Every procedure prescribed therein must be fulfilled . Otherwise the the entire process shall be invalid. 

Consult with some lawyer with all documents .

 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

1. The stay granted by high court is a strong defence for you, they cannot progress with their proposed possession or sale of property.

You can stop the same by producing the orders passed by high court in this regard.

2. How they managed this situation is their problem, what is your problem doing with this merger.

3. You give a complaint against the ARC if at all they come take possession , on the basis of the stay order in your possession.

4. 

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

When a loan account becomes delinquent and turns into an NPA, banks are required to settle it as per the RBI guidelines. This provision varies depending upon the remaining due (principal and interest) and more such factors. In this scenario, banks have to compromise on their profitability by agreeing upon an amount that can be paid by the borrower on a one-time basis. 

Better discuss with an competent advocate with all relevant documents to get precise advice.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Dear Sir/Madam,

One of the best way to linger the matter is to be in contact with all the concerned agency/persons. You are suggested to write to ARC regarding the details obtained from the ROC and ask whether it is true. Also, ask for their proposal and also keep pursuing your case and reflect the wrongs done and harassment met by you at the hands of Religere.

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

1. Make application for contempt of court against religare for selling property papers to ARC company during pendency of Stay in case. 

2. They can contest the case under the name of their parent company.

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. If you want more time then you have to first come up with an offer for one time settlement.

2. Since ARC has been sold the security papers it steps in the shoes of the original lender and can contest the case.

3. Go to ARC and make an offer for OTS and seek restructuring of the repayment plan.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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