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 .