According to the Securitisation and Reconstruction of Financial Assets Enforcement of Security Interest (SRAFESI) Act, 2002, the bank has the legal power to do so. The Credit Card Holders' Association has termed it a draconian law that violates human rights.
"Only after the bank gives notice and then seizes the property, the house owners can apply and seek any redressal from Debt Recovery Tribunal (DRT). Hence, we are asking RBI as well as the law makers of the country to either amend the existing law or exclude housing loan from the Act," C V Giddappa, the association's general secretary told mediapersons here on Tuesday.
Debt recovery
Giddappa said that with March being the end of the financial year, the banks became more aggressive in seizing the properties.
"So, we are asking people not to take loans. In fact, we had suggested the banks to allow the owners to stay in the house till the house was auctioned but to no avail," he said. The Tribunal receives 2,000-3,000 appeals in Karnataka every year.