Question
Q: What if my property is about to be auctioned?
Answer
A:
If your property is about to be auctioned by the bank due to loan default, you still have important legal rights and options. Under the SARFAESI Act, banks must first issue a 60-day demand notice, then a possession notice, and finally a 30-day auction notice. If any of these steps are not followed properly, you can challenge the auction.
Even after receiving an auction notice, you can try to negotiate with the bank for a restructuring of your loan, a longer repayment schedule, or a one-time settlement. Banks often prefer recovering money directly rather than going through a lengthy auction process.
Legally, you can also file a case before the Debt Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act and seek a stay order on the auction if there are irregularities or genuine reasons for default. In urgent cases, you may also approach the High Court.
If your property is about to be auctioned, act quickly—check whether the bank followed proper legal procedure, approach the bank for settlement or restructuring, and if necessary, file a challenge before the Debt Recovery Tribunal to protect your rights..
By Advocate BK Singh
(Delhi High Court)
