Police to Act Within 15 Days to Restore Bank's Possession of Mortgaged Property Under SARFAESI: Rajasthan High Court

According to the bank, it had lent money to the borrowers; when the loan was not repaid, it was declared a non-performing asset and the bank began proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, taking over the mortgaged property with police aid on 5 May 2026 (para 2). The bank said the borrowers then broke in and re-entered the property, and that its complaint and repeated requests to the Superintendent of Police and the SHO brought no action (paras 3-4). Its writ petition sought restoration of possession, criminal proceedings, heavy costs and compensation (para 1). Only the bank's counsel was heard (para 5).

Having heard the bank and perused the record, the Court found it just and appropriate to dispose of the petition with a direction to the Superintendent of Police and the SHO to act immediately and take appropriate action, in accordance with law, to restore possession of the mortgaged property to the bank (paras 5-6). It observed that if the bank were not allowed to take possession, it would amount to a clear case of defiance of law (para 6). Because the bank had already approached them, the two officers were under an obligation to act in consonance with the law to restore its possession (para 6). The Court expected that action within fifteen days from receipt of a certified copy of the order (para 7). The order records no finding on the alleged break-in and does not deal with the prayers for criminal proceedings, costs or compensation (paras 1, 6-8).