In plain words: even after possession, a borrower often has a crucial right — to redeem the property by clearing the dues before it is sold. But timing is everything.
What redemption means
The right of redemption lets a borrower recover the secured asset by paying the entire outstanding dues (with costs) to the bank before the sale is completed — stopping the loss of the property.
The timing has tightened
This is critical. The point until which a borrower can redeem has been narrowed by amendment — broadly, redemption is now available until the publication of the sale/auction notice, rather than right up to registration of the sale as in the older position. Because this has changed, check the current cut-off for your case.
What you must pay
- The full outstanding amount, not just the overdue instalments.
- Plus costs and charges incurred.
Why act early
Because the window to redeem closes early in the process, a borrower who wants to save the property should arrange funds and act quickly — ideally during or soon after the notice stage, not when the auction is imminent.
Practical steps
- Get the exact payoff figure from the bank in writing.
- Arrange funds (refinance, OTS, family) early.
- Exercise redemption before the cut-off, in writing.
Frequently asked questions
Can I get my property back after possession? Yes — by redeeming (paying full dues) before the cut-off, which is now generally the sale-notice publication.
Do I pay only the overdue amount? No — the full outstanding plus costs.
Why act fast? The redemption window has been narrowed; act early.
How Vakil Help Desk helps
Vakil Help Desk advises borrowers and guarantors on SARFAESI notices, DRT and DRAT proceedings, auctions, one-time settlements and stressed-asset disputes. If your bank has issued a demand or possession notice, or you are facing recovery, we can help you respond in time.
This article is for general legal awareness, not individual legal advice. SARFAESI and DRT procedure, time limits and thresholds are set by statute and RBI norms and can change, and the right step depends on your facts and the current position. Please consult a lawyer before acting on a recovery notice.