The bank cannot impound your passport for any reason.

If the loan becomes NPA  and you being a guarantor then the bank may have to take suitable action to recover the amount from the guarantors as per law.

They cannot give such threats to the guarantors. 

The bank is free to attach and sell the assets of the guarantor to apply the sale proceeds towards the repayment of loan, but it cannot apply for impounding of passport unless there is an apprehension that the guarantor will alienate the mortgaged assets and fly out of India with sale proceeds thereof.

It is not a joke to impound somebody's passport by a notice by any organization.

Freedom of movement is a Constitutional right. A citizen is given the liberty to travel, work and reside at any place where he or she wants.

The same can be curtailed only as per the procedure established by law.

The question that arises now is can a passport be impounded by exercising power under section 102 read with section 165 and 104 of the Code of Criminal Procedure, 1973? The Hon'ble Supreme Court of India in Suresh Nanda vs. CBI has answered this question in negative and observed that while the police may have the power to seize a passport under Section 102(1) Criminal Procedure Code, 1973, it does not have the power to impound the same. Impounding of a passport can only be done by the passport authority under Section 10(3) of the Passports Act, 1973 .

The bank has no authority to instruct the passport authority to invoke the provisions of section 10 of the passport act in this regard and there is no provision for that for the bank to deal with the same directly without a court order on it. The bank's apprehension in this regard cannot become law.

They can take action as per their banking provisions but cannot impound passport

Hi 

Unless and until ,banks are able to classify the loan account of the borrower as "Fraud" account, the borrower and its guarantors will not be subjected to any criminal action (such as restrictions on overseas travel etc).

In your case, it appears that it is a case of genuine stress and mere classification of account as Non Performing Asset will not be cause for any criminal action.

Please consult a Lawyer who deals with SARFAESI Act and take steps to file Securitisation application at Debt Recovery Tribunal. 

Normally, banks do make mistakes in their routine course of business and as such all borrowers, guarantors take steps by filing Securtitisation application u/s17 of SARFAESI Act and gain 

1) Time to settle the loan account and 

2) Stay orders against steps initiated by banks for recovery of dues. 

Hope this information is useful. 

Your passport cannot be impounded and you restrained from travelling abroad if loan has been repaid regularly 

you have no responsibility towards repayment of business loan 

What the bank is doing is criminal intimidation. Bank has no right to enforce any liability against you. On this point there are judgments of High Courts Supreme Court. The point is decided long back. If any notice  is issued to you can approach District Consumer Forum, under new Consumer Protection Act, 2019 the Form has power to pass interim directions. 

Bank has no power to report to CIBIL or initiate impounding of passport.

Dear sir,

 Normally courts do not prevent your movements. Better file Caveat Petition in DRT. 

the collateral security for both the loan accounts is the same

if the business loan account is marked as a NPA, then the bank can invoke the security [that is the house] in order to realise its dues

in such an event that security will not be available for the housing loan and that loan will only have a back up of the guarantors in case there is a default

that is why the bank has intimated that if the business loan account is turned NPA then it will take within its sweep the housing loan account also

so i suggest if you could offer some other collateral security to the bank for the housing loan so that if the business loan account is not serviced, then the bank can invoke the security of the house for realising its dues without affecting the housing loan account which would have a separate security 

- As per the Supreme Court in the matter of Ganga Kishun of Uttar Pradesh, if a debtor defaults, it is the guarantor’s responsibility to repay the entire loan. 

- Since, in other loan you are also a guarantor including your mother , then due to nonpayment of the housing loan by your father , you are also equally liable to repay the loan amount to the bank. 

- However if the said housing loan even become NPA , then also the bank cannot get order from the court to impound your passport and to prevent your travel to abroad , except to recover amount under the SARFAESI act

- Further, the two loans are different in nature , and hence the housing loan cannot be declared as NPA for the failure to repay the amount of business loan .

- You can take legal action against the bank .

Dear Sir,

The bank cannot give threats to guarantor of the property. You are the guarantor of the property then bank can take action to recover loan from you as law states after it will declare NPA.

Bank can only impound password if they believe that you will give you assets as sale and ran away. Otherwise they can sell your assets for repayment of loan.

So, you passport will not be impounded they must be requiring court orders for the same. Although you are repaying loan on time.

Thank you

NO, they cannot do anything against you.

you are a guarantor to the housing loan and you are liable to pay only the housing loan and not otherwise.

if they threaten to you with this remark then immediately file a complaint against them before the police, Court and also file a complaint to RBI.

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