High Court Strikes Down Unfair Loan Sale, Orders Full Refund, Compensation, and RBI Probe into Bank's Improper Auction Practices

HC found the writ petition maintainable, quashing the sale certificate and declaring it null and void. The court ordered respondent No. 1 to refund Rs. 9,93,752.94 with 12% interest, foreclose the loan account, and remove the freeze on the petitioner's savings account. Additionally, the court directed RBI to investigate respondent No. 1's actions, imposed Rs. 5,00,000 compensation, and emphasized the critical importance of due diligence in auction sales, highlighting the bank's failure to disclose property encumbrances and conduct proper verification before sale. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X