वाहन का कब्ज़ा

Vehicle repossession

A financed vehicle may be repossessed only on the terms of the loan agreement and within the law. Notice, a final chance to repay, a lawful manner of taking possession and an account of the sale are not favours. They are conditions the lender must meet.

Guide: R-2
Category: B-2
Applies to: Banks and NBFCs
Reviewed: October 2026

Noticefirst

the period stated in your agreement, before possession is taken

Finalchance

to repay the dues before the vehicle is sold

Noforce

no violence, threat or intimidation in taking possession

Accountof sale

a statement of how the sale proceeds were applied to your loan

Part 1

What the agreement must state

अनुबंध में क्या होना चाहिए

The RBI's Fair Practices Code requires an NBFC's loan agreement to contain a repossession clause stating each of the following. From 1 January 2027 the same requirement extends to banks and other regulated lenders.³⁴

The notice period before possessionHow many days' notice you will receive before the vehicle is taken.³⁴
When notice may be waivedThe circumstances, if any, in which the lender may take possession without that notice.³⁴
The procedure for taking possessionHow and by whom possession is to be taken, and what is done with the vehicle afterwards.³⁴
A final chance to repayAn opportunity to pay the dues and recover the vehicle before it is sold or auctioned.³⁴
The procedure for sale or auctionHow the vehicle will be valued and sold, and how the proceeds are applied to the loan.³⁴
A copy of the agreement for youThe lender must furnish a copy of the loan agreement with its enclosures to the borrower. Ask for it in writing if you were never given one.³

Part 2

How possession may be taken

कब्ज़ा कैसे लिया जा सकता है

No violence or intimidationThe rules on recovery conduct forbid violence, threats and intimidation against the borrower, the family or the property, whoever takes possession.⁵
From 1 Jan 2027Authority shown at the timeFrom 1 January 2027 the person acting for the lender must carry an identity card, an authorisation letter and a copy of the notice.⁴
Within the law, not on the roadThe Patna High Court has held that forcible seizure of vehicles by recovery agents, outside the procedure of law, violates the borrower's right to livelihood and dignity.⁶
Your belongings are yoursGoods, documents and personal articles inside the vehicle are not security for the loan. Ask for a written list of what was in the vehicle when it was taken.

Part 3

Records you are entitled to ask for

आप कौन से रिकॉर्ड माँग सकते हैं

Ask for these in writing. A lender that took possession lawfully has no reason to withhold them.

Record	Why it matters
The loan agreement and enclosures	Shows the notice period, the final chance to repay and the sale procedure the lender bound itself to.
The notice issued before possession	Establishes whether, and when, the notice the agreement requires was given.
Written confirmation of possession	The date, place and time of taking possession, by whom, and the condition and contents of the vehicle.
Present location and custody	Where the vehicle is held and who is answerable for it until it is sold or returned.
Notice of the final chance and of sale	The amount to be paid to recover the vehicle, and the date and manner of any sale.
Statement of account after sale	The sale price, the expenses deducted, and the balance claimed or refundable.

Part 4

What to do

क्या करें

At the time
Do not resist; record everythingNote the date, time, place and the names of the persons. Photograph the vehicle, its odometer and its contents. Ask to see their identity cards and authority.
At once, if unexplained
Report an unknown removal to the policeIf you do not know who took the vehicle, report it to the police station immediately. An unexplained removal may be theft, and the report fixes the record.
Within 24 hours
Write to the lenderAsk in writing for the records listed above, using the letter below. Keep the complaint reference.
Before the sale
Use the final chance if you chooseIf you intend to recover the vehicle, ask for the exact amount payable and pay only into the lender's account against a receipt.
After 30 days, or on rejection
EscalateWrite to the Nodal Officer and the Principal Nodal Officer, then file before the RBI Ombudsman.⁷

Where you surrendered the vehicle yourself. If you handed the vehicle to the lender's representatives and it was later seen in use by others, or released without account, ask the lender in writing to confirm the date of possession, the person who received it, its present custody, and the date and reason for any release. A surrender does not end the lender's duty to account for the vehicle it holds as security.

Part 5

Letter to the lender

ऋणदाता को पत्र

Complete the bracketed particulars, choosing the wording that matches what happened.

Request for records of repossessionTo the lender's grievance officer

To,
The Grievance Redressal Officer,
[Name of the bank or NBFC], [Branch]

Subject: Repossession of vehicle No. [registration number], Loan Account No. [number]

Madam or Sir,

1. I am the [borrower / co-borrower / guarantor] in the above loan account, under which the vehicle bearing registration No. [number], engine No. [number] and chassis No. [number] is hypothecated to your institution.

2. On [date], at about [time], at [place], the vehicle was [taken by persons stating that they acted for your institution / surrendered by me to persons stating that they acted for your institution].

3. I request you to furnish to me in writing, within the period fixed by your grievance redressal policy:
   (a) a copy of the loan agreement with its enclosures;
   (b) a copy of the notice, if any, issued before possession, with proof of its delivery;
   (c) confirmation of the date, time and place of possession, the names of the persons who took it, and the condition and contents of the vehicle at that time;
   (d) the present location of the vehicle and the person in whose custody it is held;
   (e) the amount payable by me to recover the vehicle, and the date and manner of any proposed sale;
   (f) if the vehicle has been released or sold, the date, the reason, the price realised and a statement of account.

4. I reserve all my rights in the matter.

[Name]
[Address]
[Email address]
[Date]

Open in my email Have the Bureau send it

Part 6

Evidence to keep

रखने योग्य प्रमाण

The loan agreement, sanction letter and repayment schedule
All notices received, with envelopes or messages showing dates
Photographs and video of the vehicle and of the persons taking it
Names, numbers and identity details shown to you
A list of goods and documents left inside
Receipts of the EMIs paid
The police report, if one was made
Your letters to the lender and their references

Part 7

Questions

प्रश्न

Can the lender take my vehicle without any notice?

The agreement must state the notice period and the circumstances, if any, in which notice may be waived. Ask for the agreement and the notice issued. If no notice was given as the agreement requires, say so in your complaint.³

Can recovery agents stop my vehicle on the road and take it?

The rules on recovery conduct forbid violence, threats and intimidation, and the Patna High Court has held forcible seizure by recovery agents outside the procedure of law to be illegal. If a vehicle is taken by force, report it to the police and to the lender in writing at once.⁵⁶

Do I still owe money after the vehicle is sold?

The sale price is applied to the loan. If it falls short, the lender may claim the balance; if it exceeds the dues and expenses, the surplus belongs to the borrower. Insist on a written statement of account showing the sale price and each deduction.

I am a co-borrower. Can I ask for these records?

Yes. A co-borrower or guarantor is usually liable on the loan and is entitled to ask for the agreement, the notices, the possession record and the statement of account in their own name.

Part 8

Other guides

अन्य मार्गदर्शिकाएँ

Case Registry

A grievance left unanswered is a grievance not yet registered.