The Patna High Court has ordered banks and financial institutions not to forcibly acquire vehicles from owners for non-payment of vehicle loans, opining that the act violates the fundamental right to life and livelihood of an individual.
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Middle class people who want to own a bike or a car take loans from banks or non-bank financial institutions.
They are paying this loan amount in installments.
Investigation
In this, bank and financial institutions acquire vehicles from the owners through the fathers and raiders, even if the installments are not paid a few times.
This event continues across the country. In this case, the case related to this issue came up for hearing in the Patna High Court in Bihar recently.
Then, Judge Rajiv Ranjan Prasad ordered:
The Supreme Court has already issued an order banning the acquisition of vehicles from owners through agents, raiders, and dealers.
Banks and financial institutions must exercise their rights within constitutional limits and in accordance with law. Banks and financial institutions cannot operate contrary to the fundamental principles and principles of India.
That is, no person should be deprived of his livelihood and right to live with dignity without following due process of law.
Auto loan recovery should follow the rules empowering banks and financial institutions to recover bad debts.
Penalty
Instead, taking possession of vehicles by force is unacceptable.
Banks and financial institutions cannot be allowed to take the law into their own hands under a vehicle repossession loan agreement.
In such proceedings, no vehicle shall be impounded in Bihar. All District Superintendents of Police should monitor and ensure this.
A fine of Rs 50,000 should be imposed on banks and financial institutions found guilty of these acts.
Thus the judge ordered.
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