Legal Notice to Bank Regarding Education Loan Recovery Under SARFAESI Act


Date: __________
          1. Branch Manager

2. Mr.__________
              Chief Manager / Authorized Officer
               _________ Bank
               Zonal Office, ________.

          Under instructions from my clients
1.   ________, S/o.__________, residing at _______________________ and
2.   __________, S/o.__________ residing at _________________ I hereby issue the following legal notice to you:
1.       My clients state that they received your notice dated ______ on ________. It is true that 1st of our client is a student and 2nd of our client is a Co-Borrower. On ________ you started to sanction Education loan of Rs. _______-/(Rupees _______only) to both of our clients in installment basis.

2.       My clients state that your notice is vague and not clear as you have stated that the outstanding dues payable by our clients to you is Rs._____/-(Rupees nine lakhs, ten thousand, seven hundred and twenty two only) as on ________. It is not true that our clients have to pay Rs.________/-(Rupees _________ only) as stated by you. You have not provided the detailed calculation of the outstanding amount and as to how you have arrived at such an exorbitant amount of Rs._____/-.

3.       My clients state that it is not true that despite your repeated requests to repay the loan amount, my clients have failed and committed default in repaying the amount. My clients have repaid the Educational loan about Rs._______/-(Rupees ________ only) in various dates. Our clients state that 1st of my client is unemployed and is still searching for employment and 2nd of my client is a farmer. Both of my clients have no source of income other than the income derived from their agricultural land. Inspite of the non-employment of 1st of my client and heavy loss in agriculture, my clients had repaid their Educational loan without any inordinate delay.

4.       My clients state that it is improper and illegal that you have issued notice to our clients under section 13(2) of SARFAESI Act and stated that in the event of failing to pay the mentioned exorbitant amount, you will exercise your enforcement rights under section 13(4) of the said Act. That in your notice you have scheduled the details of the assets in which security interest is created. According to your notice purported mortgaged land bearing Survey No.8/2A as per new sub-division 8/2A1, Survey no.15/1 as per new sub-division 15/1D2, Survey No.15/1C and Survey No.15/3B2 in _______ Village, ______ Taluka, ______ District are the agricultural lands. The secured asset is agricultural land belonging to our clients and as per Section 31(i) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the provisions of the SARFAESI Act does not apply to any security interest created in agricultural land. 

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