The bank cannot directly evict a tenant under the SARFAESI Act if the tenancy existed before the mortgage... The bank can act only against the borrower not a legal tenant Because the tenancy was mentioned at the time of mortgage.. the tenant is protected by law.. If the bank wants possession it must follow proper tenancy laws and cannot remove the tenant by force..

The bank cannot automatically evict such a tenant under SARFAESI, if the tenancy is genuine, old, and created prior to the mortgage.

The Tenant's rights who was a tenant  prior to mortgage is protected if  the tenant has been paying rent 20–25 years, that the tenancy existed before the mortgage and the mortgage deed itself records existence of tenant.  In that case the tenant’s rights prevail over the bank’s security interest.

Under West Bengal Premises Tenancy Act, 1997, a tenant cannot be evicted except on specific grounds.  Only a Civil Court / Rent Controller can order eviction.  Bank is not the landlord, so it has no direct eviction right.

Even under SARFAESI  the bank can take symbolic possession with the assistance of Magistrate under Section 14  only if property is free from lawful occupation.  The Magistrate must verify tenancy before passing possession order.

Even if the outstanding loan is ₹20 lakhs, the DRT not available.  The tenant protection remains unchanged
This issue is not about borrower-bank dispute, but tenant rights..

Even if the borrower/landlord is deceased and his legal heirs are absent, the bank has to follow the civil court process or under rental act for eviction of the lawful tenant. 

No, the bank cannot automatically or forcibly evict a long-standing tenant merely by invoking the SARFAESI Act, 2002, particularly where the tenancy predates the mortgage and was expressly disclosed to the bank at the time of creation of the security. SARFAESI proceedings allow enforcement of the borrower’s interest in the secured asset, but they do not permit summary eviction of a lawful tenant. Any eviction must follow due process under applicable tenancy law.

Legal position on pre-existing tenancy and SARFAESI is very clear, where a tenant has been paying rent continuously for 20–25 years, the tenancy existed prior to the mortgage, and the mortgage deed itself records the existence of such tenancy, the tenant’s rights are protected in law. The secured creditor steps into the shoes of the mortgagor and takes the property subject to existing encumbrances, including lawful tenancy. The Supreme Court in Harshad Govardhan Sondagar v. International Assets Reconstruction Co. Ltd. (2014) 6 SCC 1 has categorically held that a tenant whose lease predates the mortgage, or is created with the bank’s knowledge or consent, cannot be evicted through SARFAESI measures, and the bank must approach the competent civil or tenancy forum for eviction.

Even if the bank invokes Section 14 of the SARFAESI Act and approaches the District Magistrate or CMM for assistance in taking physical possession, such authority cannot order the eviction of a bona fide tenant. The tenant is entitled to appear, object, and place on record rent receipts, lease documents, and proof of long and settled possession. The fact that the outstanding loan amount is below ₹20 lakhs, thereby excluding DRT jurisdiction, does not strengthen the bank’s case against the tenant; SARFAESI may still be used for recovery, but not to defeat protected tenancy rights.

In West Bengal, tenancy enjoys strong statutory protection under the West Bengal Premises Tenancy Act, 1997. A tenant cannot be evicted except on specific grounds prescribed by the Act, and the death of the borrower or non-involvement of legal heirs does not extinguish the tenancy, as tenancy runs with the property. Consequently, the bank can at best auction the property only “subject to tenancy”; it cannot seek vacant possession through SARFAESI or police/DM assistance. Eviction, if at all permissible, requires a properly instituted eviction suit under the West Bengal tenancy law, and even the subsequent purchaser cannot forcibly evict the tenant without following due process of law.

Yes there are ample powers under sarfesi act for vacation and even auction of property 

Based on the facts you have stated, the bank cannot straightaway evict a long-standing tenant like you by merely invoking the SARFAESI Act, 2002, especially in the circumstances you describe.
Under Indian law, the SARFAESI Act allows a secured creditor (bank) to take possession of a mortgaged property only to the extent of the borrower’s interest. A bank steps into the shoes of the borrower; it does not get a higher right than the borrower himself had. Therefore, if the borrower had already let out the property and the tenancy was disclosed and subsisting, the bank’s rights remain subject to that tenancy.
In your case, several crucial facts work strongly in favour of the tenant:
The tenancy has existed for 20–25 years, which shows settled, long-term possession.
The tenancy was disclosed to the bank at the time of mortgage, and the mortgage deed itself records the existence of a tenant.
Rent has been continuously deposited, showing the tenancy is genuine and not a sham or collusive arrangement.
The original borrower is deceased, and the legal heirs are neither in possession nor residing in the property.
The outstanding loan amount is below ₹20 lakhs, meaning DRT jurisdiction itself is not available.
When a tenancy is prior to the mortgage or disclosed and accepted by the bank, the bank cannot use SARFAESI to evict the tenant. This position is now well settled in law. The Supreme Court has held that a bona fide tenant in lawful possession cannot be dispossessed under SARFAESI and that the bank must respect such tenancy.
Even after the 2016 amendment to SARFAESI (Section 17(4A)), the bank can seek eviction of a tenant only if it proves that:
the tenancy is created after the mortgage without consent, or
the tenancy is sham, collusive, or created merely to defeat recovery.
From your facts, neither of these applies. Your tenancy predates or was expressly acknowledged at the time of mortgage.
In West Bengal, this protection is even stronger because tenancy laws are tenant-protective. A lawful tenant cannot be evicted except in accordance with the West Bengal Premises Tenancy Act, and only on specific statutory grounds. A bank is not exempt from this requirement.
Practically speaking, what the bank can do is:
Take symbolic possession of the owner’s rights,
Auction the property subject to the tenancy,
Recover dues from sale proceeds or from the borrower’s estate.
What the bank cannot do is:
Forcibly dispossess the tenant through SARFAESI,
Obtain police help to evict a protected tenant,
Bypass tenancy law by calling the tenant an “unauthorised occupant”.
If the bank attempts to proceed against you, the correct legal response would be:
To assert your status as a lawful tenant,
To rely on the mortgage deed acknowledging tenancy,
To seek protection from the civil court if necessary,
Or, if proceedings are initiated under SARFAESI, to challenge any eviction attempt as illegal and without jurisdiction.
In short, no, the bank cannot lawfully vacate or evict you from the property through court or police by forcing SARFAESI, given a long-standing, disclosed tenancy. Any attempt to do so would be legally vulnerable and open to challenge.

No, bank cannot vacate via SARFAESI if tenancy (20-25 years, rent deposited) was disclosed/noted in mortgage deed—bank's security interest is subject to it per Section 13(13). Challenge any Section 14 eviction order in Calcutta HC writ; tenancy protected under WB Premises Tenancy Act.

1. Yes, but for that the bank shall have to initiate SARFAESI proceedings like issuance of Demand Notice u/s13(2), 13(4)  of the Act and finally by obtaining DM's order for taking  physical possession of the mortgaged property by applying u/s14 of the Act.

2. The lending bank can not file O.A. as per RDDB  & FI Act since the outstanding is less than Rs.20 lakhs and shall wait till it touches Rs.2 lakhs with the interest accrues on the outstanding amount.

3. The Bank can also sell the said property with the tenant if his tenancy right can be proved before DRT.

Dear client,

No, Banks cannot utilize SARFAESI Act to evict a lawful tenant. This is because the SARFAESI Act does not override the particular rent control laws. Therefore a forcible eviction is not possible under SARFAESI Act and even if the case is brought to the court the chances are that it might not have a standing. 

However if the notice is being sent under the Act, then immediately file the objection for the same since a protected tenant cannot be forcefully evicted.           

I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.