Kochi: The High Court on Tuesday ordered to restore to Preetha Shaji her house auctioned and sold over default on a loan.
HC termed the auction, conducted eight years after the Debt Recovery Tribunal’s (DRT) order, legally invalid. Alongside, HC annulled auction and sale of the property valued at around Rs 2.5 crore for 37. 8 lakhs.
Preetha Shaji can retain the house paying the bank Rs 43.35 lakhs within one month; and failing which the bank can initiate fresh auction procedure.
It all began in 1994 when Preetha Shaji became a surety for Rs 2 lakh as a loan taken by a friend from HDFC bank.
The non-prepayment of the loan over time led to accumulation of fine and interest to the tune of Rs 2.70 crore. The bank then auctioned and sold the 18.5 cent property for Rs 37 lakh.
Following this, Preetha Shaji sought CBI probe into what she alleged conspiracy in the bank’s action. She staged protest in front of DRT office in Panampilly Nagar.
AS the police removed her from the spot, she resorted to hunger strike setting up a pyre.