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Clarification on a purchase of second hand car which is financed


06-Mar-2023 (In Civil Law)
I bought a car from a person, which was listed on Olx, he was from Udaipiur, Rajasthan (I'm from Madhya Pradesh), seemed to be a good person, I went there to buy the car, the deal was for 16 lacs, I paid 10 lac via NEFT to his bank account. Remaining was to be paid within 45 days, we made a agreement from notary. Now what happened is I got 10 days late in making the payment full, though I paid around 3 lacs more withing 2 weeks of taking delivery of vehicle. The person was short tempored & we had arguments, I was @fault, he demanded 15 thousand more which I paid I asked him to send the original RC card & insurance copy with security cheques, he sent person with these original docs & second key, I made the remaining payment in cash. After that someone told me to check with GOVT facility VAHAN with vehicle no to get details of the car & found that the car turned out to be financed! Though agreement states that the seller is responsible for any finances, do I have any legal stand ?
Answers (2)

Answer #1
714 votes
BUYER WE AWARE. HYPOTHECATION REMAIN WITH BANK IN CASE THE VEHICLE IS FINANCED BY THE BANK. SELLING OF HYPOTHECATED VEHICLE IS NO SALE IN THE EYE OF LAW. IT WAS A CASE OF CHEATING. LODGE AN FIR. OTHERWISE IN CASE NON-PAYMENT MONTHLY INSTALMENT, BANK MAY SEIZE THE VEHICLE FROM YOUR POSSESSION.
Answer #2
785 votes
Even if the agreement states that the seller is responsible for repayment, your vehicle my be sold if the seller makes default. Your only remedy is against the seller. You may recover the purchase money from him by filing a suit. You may also file a police complaint or complaint before court under section 420 of IPC if the fact of vehicle being on finance was not disclosed by him to you at the time of the sale.

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