A person who is unable to pay bank loans is in very precarious situation.
Bank gets power to auction and sale away his mortgaged properties against his will.
The borrower often complains that their property was valued more than Rs.1,00,000,00/- but bank put lesser value and sold away property for Rs 10,000,00/- in collusion with auction purchasers.
Such things can happen. And therefore there are rules
1) That bank should get property evaluated by independant agency before auctioning it.
2) That 30 days notice should be given to borrower.
If such rules are not followed, the court may cancel such sales.
For more reference :- please check judgement dated 22/4/2014 in Civil Appeal No. Civil Appeal No. 4679 of 2014
The judgement can be searched on official website of Supreme Court of India
Haresh Raichura
2/7/2014
