Facing a Defaulted Loan and SARFAESI Auction? Don't Panic! Here's What You Can Do (Instead of Filing a Police Report).
Imagine this: You receive a notice that your property is going up for auction due to a defaulted loan. Panic sets in, and you consider filing a police report, thinking someone stole your property. But hold on! As a recent judgement by the Allahabad High Court clarifies, filing a police report might not be the most helpful course of action. Here's what you need to understand about defaulted loans, SARFAESI auctions, and better alternatives to navigate this situation. What is a SARFAESI Auction? SARFAESI stands for the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. This act empowers banks and financial institutions to recover loans by auctioning the property of defaulting borrowers. Why Shouldn't I File a Police Report? While a defaulted loan and a looming auction might feel like a form of theft, the process is likely legal and follows the SARFAESI Act. Filing a police report might create unnecessary delays and wouldn't...