Demand notice 2 for LAP

Question

I have a loan LAP in HDB they have published second appendix IV possession notice in newspaper in that notice its mentioned within 60 I need to pay the entire amount. But the executive made a call yesterday and said need to hand over the house next week what should I do I need the time atleast the time mentioned on the newspaper.

Vidhikarya · Accepted Answer

Dear ClientA Registered Auction notice with acknowledgment due shall be served by the BankFI to all such identified borrowers giving a 14-day notice period to ensure that sufficient time and opportunity are given to the borrower for redemption and to avoid auction sale. The Debt Recovery Tribunal is a quasi-judicial body that handles SARFAESI-related matters. You can also approach the DRT on receipt of the auction notice seeking a stay order on the possession. If the DRT is satisfied with your case they may grant a stay order preventing the bank from taking symbolic possession. Banks generally put properties for auction only after taking physical possession. but sometimes properties are put up for auction on Symbolic possession also Any person who is aggrieved by any of the measures taken under Section 134 by the secured creditor can challenge the same before the Debts Recovery Tribunal DRT by filing a securitization applicationSA under Section 171 of the SARFAESI Act within 45 days from the date of taking such measure by the secured creditor. Further Section 175 casts an obligation on the DRT to deal with the SA filed under Section 171 as expeditiously as possible and dispose it of within sixty days from the date of such SA. The proviso to Section 175 empowers the DRT to extend the said period for a maximum period of four months from the date of making such SA by the secured creditor. Reach out to an Advocate experienced in DRT matter for guidance and steps.

Vidhikarya · Answer

Dear Client In the context of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest SARFAESI Act the process involves the issuance of a Registered Auction Notice by the Bank or Financial Institution FI to identified borrowers. This notice sent with acknowledgment due provides a 14-day period for the borrower to redeem the property and avoid auction sale.The Debt Recovery Tribunal DRT is a quasi-judicial body that handles SARFAESI-related matters. If a borrower receives an auction notice they have the option to approach the DRT seeking a stay order on possession. If the DRT finds merit in the case they may grant a stay order preventing the bank from taking symbolic possession. Its worth noting that banks usually proceed with property auctions after taking physical possession but in some cases auctions may be initiated based on symbolic possession.Any person aggrieved by measures taken under Section 134 of the SARFAESI Act by the secured creditor can challenge it before the DRT by filing a securitization application SA under Section 171 within 45 days from the date of the secured creditors action. Section 175 imposes an obligation on the DRT to handle the SA expeditiously and dispose of it within sixty days from the date of filing. The proviso to Section 175 allows the DRT to extend this period for a maximum of four months from the date of making the SA by the secured creditor. This legal recourse provides a mechanism for borrowers to challenge and seek redressal for measures taken by secured creditors under the SARFAESI Act.

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