In a case pertaining to Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, the Debts Recovery Tribunal, Patna, has found the Canara Bank main branch, Gandhi Maidan, chief manager on wrong side of the law. The petition was filed against bank authorities by one Dinesh Prasad, a resident of Bakarganj Bazaza Lane, for violation of Sarfaesi Act.
According to the tribunal order, Prasad took term loan from the bank in 2002 to purchase the property — now in question — located at shop no. G-23, Govinda Complex, Govind Mitra Road, and made payment to the bank. The bank started debiting the interest illegally on monthly basis which resulted into financial crunch and the applicant was overburdened and the bank illegally classified the account as non-productive account on June 30, 2004 without any information to the applicant.
The notice by the bank was served to Prasad in August 2005 and symbolic possession of the property was taken by the bank on December 30, 2005.
On April 27, 2008, the bank published the sale notice in the newspaper. The petitioner filed a petition before the tribunal within stipulated time limit — on June 11, 2008.
During the pendency of the appeal, the bank executed the sale deed in favour of the single bidder for the property, one Damodar Prasad Santhalia, on August 12, 2008 without seeking permission from the tribunal.
The tribunal noted that in this case the fraud was committed by the bank officials and auction purchaser by giving false affidavits and the bank sold the property during pendency of the appeal. The tribunal order with regard to the public auction said the legal obligation of the bank authorities was to secure the best price, but in this case the respondent bank sold the property at a throwaway price to Santhalia.
Allowing the Sarfaesi appeal of Prasad, the tribunal cancelled the sale certificate and confirmation of the sale certificate.
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GOOD AND BEST DECISION SOME MORE ACTION IS REQIRED AND TE CULPRIT OFFICIALS SENT BEIND BARS THAT BECOMES A VERY GGOOD LESSON TO FRAUD OFFICERS.
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