For recovery of home loan the bank can proceed with the process of law as prescribed in the sarfeasi act.

If he is able to save his house property now by some means, this may be a temporary relief only because the bank is yet to take any action agaisnt him for recovery of the amount due to the bank due to his fraudulent acts agaisnt the bank for the losses suffered by bank.

But remember that the bank should have initiated recovery action immediately within three years from the date of finding him to have created financial loss to the  bank due to his involvement in the fraudulent and cheating acts agaisnt the bank.

If banker is found involved in fraud his assets can be attached by the bank through court orders 

2) best option is to get property auctioned and let friendly family member purchase property on auction as highest bidder 

So what exactly is your problem? 

- As per Supreme Court, if a property owner fails to pay his dues to the bank, then the bank has the legal right to sell off his immovable property to recover losses.

- But, the task to recover the dues should be performed in a specific manner and Authorities/bank cannot resort to extreme measure.

- Further, if the defaulter wants to purchase that property after paying the entire dues of the bank , then the auction will stand cancelled, and he would be able to claim to the property again.

- Hence, after the payment of defaulted amount , the notice under SARFAESI act can be withdraw by the bank 

- Further, if the banker will declared guilty , then the bank will firstly claim the service amount or salary of the defaulter , and if not fulfilled , then the bank can recover the amount after selling the mortgaged property . 

- You can transfer the mortgaged property in the name of any family member after executing a registered gift deed , after taking an NOC from the bank. 

These cases are very common in various Courts of India and Supreme Court of India. I can understand your concern in this regard. Bank shall be entitled to recover its entire dues under the said account from our persons or property upon default in payment. However, there are various ways to tackle it.

In such cases, at the end of adjudication, the Tribunal is supposed to grant a certificate called ‘Recovery Certificate’ in favour of the Bank crystallizing the amount to be recovered from the borrower and it is like a ‘Decree’ granted by a Civil Court. There was a mechanism attached to the Debt Recovery Tribunal to conduct execution proceedings pursuant to the grant of ‘Recovery Certificate’. Detailed discussion is required in such cases. 

You may contact my secretary to connect with me for clarification. 

Gopal Verma

Advocate on Record & Amicus Curiae

Supreme Court of India 

IF any recovery came down than it will be by filling civil suit and no forceful auction of property.

In general, if the alleged banker is found guilty in a court of law and ordered to pay restitution or compensate for any financial losses caused by the fraud, the bank or the relevant agency may seek to recover the amount owed through various means, including the auction of assets or properties owned by the banker. This could include the home constructed with the help of the home loan.

If the alleged banker is concerned about the potential loss of his home through auction, it is crucial to consult with a lawyer who can assess the situation, advise on the available legal options, and help develop a strategy to protect the home and minimize the potential consequences.

The lawyer may be able to negotiate with the bank or the relevant agency on behalf of the alleged banker, explore possibilities for settlement or alternative arrangements, or assist in crafting a defense strategy if the case goes to trial.

You can attach his salaries and other office Benefits if any