The Bombay High Court has allowed proceedings against HDFC Bank over allegations that it seized a flat in Pune by breaking open locks after its owners defaulted on a loan.
In 2003, the Mahadiks couple had taken a loan of Rs8.5 lakh from HDFC Bank to buy a flat in Pune. In 2008, the Bank pasted a notice on the flat under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. On 24 December 2010, the couple lodged a complaint before the magistrate who dismissed it saying the couple were ‘defaulters’. They appealed in the sessions court; but the appeal was dismissed. Then, they approached the Bombay High Court.
The High Court said, “Whether offences have been committed in the process of taking possession of the flat, and if so by whom, can be properly decided only after an investigation is carried out.” The judge questioned whether the Bank could have forcibly taken possession of the flat without a court order.