Bank e-auction SARFAESI act
I have participated in bank e auction through website,I did not inspect the property( which is N. A. Plot) before submission Of bid because 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, assuming 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 after visiting bank branch. its disputed and case is in court, Bank on its notice to sale through auction mention property on" Physical possession "but now when I went to see property but Bank not able to show where is property exactly. there are more than 2-3 thousand N.A 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.
1. Bank not communicated in writing that I'm the winner of Auction.or they have not confirm in writing That I'm the highest bidder in writing.
2. Bank not confirm in writing that Sale will be in my name . Confirmation of Sale not done yet.
2.Bank not placed any sign board that property which they put on sale.Bank have not put any possession notice on Plot which they set for Auction.but in Advertising they mention in Physical possession.
Asked 1 month ago in Property Law from Thane, Maharashtra
Under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest At, 2002 (for short 'SARFAESI Act'), possession has to be taken by the secured creditor and on auction, it has to be handed over to the purchaser
2) write to the bank to demarcate the boundaries of property sold to you by auction
3) wait for bank to communicate to you that you are the highest bidder in the auction
4) if you do not pay balance amount bank will forfeit your 25 per cent payment made by you . there must be clause in auction notice t that permits the forfeiture of the earnest money deposited. But this can only be if the auction-purchaser fails to comply with the conditions of sale
5) on receipt of balance sale consideration of 75% towards the movable and immovable assets, the sale certificate would be registered with the jurisdictional Sub-Registrar.
You threw caution to wind by not conducting due diligence before bidding. Now file a suit for recovery of money against the bank on the ground of fraud committed by the bank. A criminal case for cheating and breach of trust may also be filed under sections 406 and 420 IPC against bank