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Bank loan issue with my friend who purchased the car


11-Mar-2026 (In Recovery Law)
Hi, One of my friend purchased one BMW car 4 months back in 70 lac rupees. He already paid 40 lac rupees. Having all the documents. Suddenly the saller Absconded and no clue. Git to know he took 60 lac rupee loan for the car he sold to my friend . Now bank is chasing my friend for this loan . Bank made complaint the police and police took the car in police custody . What legal remedy my friend have ? Please suggest
Answers (1)

Answer #1
959 votes
If the bank loan is in your name but your friend purchased and is using the car, the legal position mainly depends on whose name is on the loan agreement and RC (registration certificate). 1. If the loan is in your name Legally, the bank will treat you as the borrower, even if your friend is using the car. So if EMI is not paid: The bank can recover money from you. Your CIBIL score will be affected. The bank may seize the car. 2. If the car RC is also in your name Then legally the car belongs to you. You can: Take back the car from your friend. File a police complaint for criminal breach of trust under Section 406 IPC if he refuses to return it.
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