Supreme Court orders RBI to prevent forcible vehicle repossession by banks/NBFCs
The case involves a borrower challenging a bank's forcible repossession of his vehicle without proper notice, arguing it violates contractual terms and fair practices. The core issue is whether banks/NBFCs can forcibly repossess vehicles without adhering to notice requirements and fair recovery practices.
Petitioner: Hari Dutta Sharma; Respondents: State of U.P. & Ors.; Bench: Alok Aradhe, J.
- RBI directed to issue directions to prevent forcible repossession of vehicles by banks/NBFCs
- Banks/NBFCs must not resort to undue harassment or use of muscle power for loan recovery
- Repossession must follow lawful means and contractual notice periods
- RBI Guidelines on Fair Practices Code for Lenders must be adhered to
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Document details
| Official title | Supreme Court Asks RBI To Issue Directions To Prevent Forcible Repossession Of Vehicles By Banks, NBFCs |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |