Truck Owner Faces Repossession After Loan Default Amid Vehicle Defects

Barabanki, Uttar Pradesh - Sher Singh, a resident of Barabanki, encountered severe financial distress after his attempt to purchase a heavy goods truck with a bank loan turned problematic. Singh had secured a loan amounting to Rs 16.55 lakh from a local bank with the intention of buying a truck, which was to be repaid in 47 equated monthly instalments (EMIs) of Rs 45,600 each.

According to Singh, shortly after acquiring the truck, he discovered significant mechanical issues that led to substantial losses in his business operations. This unforeseen situation caused him to delay his EMI payments. In response, Singh approached the bank for an extension, which was granted, and the bank accepted a partial payment on November 23, 2012.

However, just two days later, on November 25, 2012, the situation escalated when 8 to 10 musclemen, allegedly acting on behalf of the bank or a recovery agency, intercepted Singh's truck at Haidargarh in Barabanki District. These individuals forcibly repossessed the vehicle, leaving Singh in a precarious financial and legal situation.

Singh has since approached local authorities to address this aggressive repossession, claiming that the forceful seizure was not only illegal but also conducted without due process, especially given the bank's prior agreement to an extension.

This incident has raised concerns over the methods employed by recovery agents and the protection available to borrowers facing unexpected financial hardships. The local police have confirmed that they are investigating the matter, focusing on both the legitimacy of the repossession and the conduct of those involved in the seizure.

The case underscores the broader issues of loan defaults, vehicle defects, and the enforcement of loan agreements, spotlighting the need for more transparent and humane recovery practices in the financial sector.