Unfortunately, the last letter we received stated that the bank is considering other means – including invoking the powers of statutory auction – to sell the property and recover their money. According to the law, commercial banks are compelled to sell property of a defaulter at the highest market value. Traditionally, there were no legal requirements that the lenders recover specific amountsfrom auctions of defaulters’ property. The intention of this law is that the bank sells the property at the highest market value to settle outstanding balance and the defaulter pockets the balance. However, even before the passing of the new law, some banks opted for out of court settlements before selling property of defaulters.

Source: Standard Digital February 02, 2017 07:57 UTC