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Fraud by a PSU Bank - False Information for Property Auction
02-Sep-2025 (In Criminal Law)
A bank auction a property as 1240 sq ft super built up area. Post winning the auction, and making the payment ( registry not done), Icame to know that the property was of much lower super built area - app 885 sqft and bank had wrongly advertised. The bank is saying that theyhave sold the property on as is where is whatsoever it is basis and even if they have falisfied information, they will not be cancelling the auction and refunding the money. Pls advise on what legal recourse can be taken
You should issue a Legal Notice to Bank for that kind of conduct first then if bank not resolve your issue just file a Writ petition before High Court for more clarity you may book a consultation then I'll elaborate properly.
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Adv. Anurag Bhatt
Adv. Anurag Bhatt
Allahabad | 700+ Answers
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What to seek:
1. Set aside the auction sale;
2. Refund of the entire consideration + interest (DRT commonly orders interest aligned to the bank’s lending rate);
3. Costs;
4. Interim relief restraining issue of sale certificate/registration pending disposal.
• Why DRT and not Consumer Forum? NCDRC/State Commissions routinely hold auction purchasers are not “consumers” and also note S.34 SARFAESI bar. Don’t waste time there.  
• Supportive precedents:
– Delhi High Court (2024) ordered refund despite “as-is-where-is”, emphasising full and honest disclosure in e-auctions (Kalyani (India) Pvt. Ltd. v. PNB). Use this to counter the bank’s clause. 
– Courts treat “as-is-where-is” as not a blanket shield where the bank’s own notice misleads.
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Adv. Aishwarya Panday
Adv. Aishwarya Panday
Lucknow | 100+ Answers
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the bank auction of property done in a false manner as 1240 Sq ft whereas the actual value is 885 Sq ft and that bank had wrongly advertised the bank is clear they will not cancel the auction and refund the money
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Adv. Spiti Sarkar
Adv. Spiti Sarkar
Greater Noida | 700+ Answers
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This is not a small issue – it is a clear case of misrepresentation by the bank. The “as is where is” clause cannot save them when they have given false information about the property size (1240 sq. ft. vs. 885 sq. ft.). That clause only protects them for the condition of the property, not for deliberately misleading facts.
Your legal options are strong:
Consumer Court – File for refund + compensation for unfair trade practice.
High Court Writ Petition – Challenge the auction and seek directions for refund or correction.
Civil Suit for Cancellation & Recovery – Directly seek cancellation of sale due to fraud.
RBI / Banking Ombudsman Complaint – Quick pressure tool against the bank.
With my online legal mechanisms and High Court expertise, I can handle the entire process from home for you – from filing a legal notice, complaint, or writ petition – to ensure the bank is forced to act. Do not delay, because every day of silence strengthens their defence.
Adv. Vaibhav Sangam Mishra
High Court, Uttar Pradesh
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Adv. Vaibhav Sangam Mishra
Adv. Vaibhav Sangam Mishra
Lucknow | 50+ Answers
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That deed of the Bank does seem fraudulent in the first instance, since bank is required to provide the details of the auctioning property and inform the potential customers of the area, structure, furniture etc inclusive of the auction, etc.
if the bank did not took care of that and fraudulently sold you a smaller piece of the property which you did not had any intention to purchase, then you have rights protecting you.
the execution process would still be pending in the court, so you need to file objections as early as possible.
you could also sue the bank personally for fraud and loss of property and recover damages.
you could also complain about the same before the various benches and tribunals concerned with the matter.
get in touch with a qualified and expert advocate and have a proper consultation.
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Adv. Faisal Ashfaq
Adv. Faisal Ashfaq
Bareilly | 25+ Answers
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