Opinion Regarding SBI Loan Issue and Possible SARFAESI Action

816 votes

If your home loan EMIs are regular and there is no default, the bank generally cannot take action against the residential property for the default of a separate car loan, unless both loans are legally linked or secured by the same collateral. Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, action can be taken only against the secured asset relating to that particular loan. If the vehicle was repossessed for the car loan, the bank must first sell the vehicle and adjust the amount towards the outstanding dues. If the bank wrongly classifies both accounts as NPA or threatens action against your house despite regular home loan payments, you may immediately submit a written representation to the bank and, if required, challenge the action before the Debt Recovery Tribunal. Legal remedy is available against any improper SARFAESI action.

Advocate Vinod Todiwan LawRato

935 votes

you need to file for the securitization application in the debt recovery tribunal which deals with the debt related matters of bank and reply to each and every notice given by bank and seek one time settlement from bank or seek restructure of EMI in both the accounts so that you can pay them or ask for stay on auction by paying 10-20% upfront

Advocate Moksh Jain LawRato