Supreme Court says banks and NBFCs must follow repossession law
India
The Supreme Court has made it clear: banks and nonbank financial companies (NBFCs) have to follow the law if they want to repossess your vehicle after a loan default.
They called out both financial companies and the Reserve Bank of India for not sticking to proper procedures, reminding everyone that borrowers have rights too.
Court orders Cholamandalam to pay damages
Cholamandalam Investment and Finance Company took a truck without giving the legally required seven-day notice and used heavy-handed tactics.
The court said this was out of line, ordered all related loans closed, told them to refund ₹4.5 lakh with 6% interest, pay ₹10 lakh for mental distress and lost income, plus another ₹50,000 in costs.
This sets a strong example that ethical recovery matters.