Frequently Asked Questions
- All Categories
- Stressed asset
- Financial institutions
- Investment options
- Notice
- Notice terms
- Diligence
- Application
- Auction
- Payment schedule
- Loans
- Post payment process
- Registration
- Property visit report
Is possession with these banks
Yes. Properties are either under physical possession, i.e. with lock and key of the bank or under symbolic possession, which is legal possession.
Do the sellers have right to sell these properties
Yes.
Banks auction these properties either under SARFAESI or under IBC. Both these laws are two of the most conclusive ones in India and provide the banks with full authority to sell these assets for recovering their dues. The laws specifically provide that civil courts to not have any jurisdiction over properties sold under SARFAESI and IBC.
Are the sellers bad guys here for selling assets
Actually banks or institutions selling are the exploited party here. Their money is stuck with borrowers and is affecting their financial health.
How do they get this property
Borrowers of secured loans mortgage their property with banks. When the borrower does not pay their dues even after providing multiple options to repay and restructure, banks put up these assets for auctions.
Why are they offering so much discount
All they need is payment from a bank account and register at full sale price. There could be increased stamp duty so this is factored. Also, Banks don’t spend on sales and marketing, which they pass on to the buyer.
Why are FIs selling property
To recover money that loan defaulters failed to repay. Banks do not have the intent to selling property for making profits out of it.