Siddartha S. Karnani Highlights Borrowers’ Rights During Vehicle Repossession

Siddartha S. Karnani recently shared his insights with Business Standard on the legal rights available to borrowers when banks or non-banking financial companies (NBFCs) seek to repossess financed vehicles.

Commenting on the responsibilities of lenders, Siddartha emphasized that banks and NBFCs cannot distance themselves from the conduct of their recovery agents. He noted that financial institutions remain accountable for the actions of agents engaged in recovery and repossession activities and may be held responsible for any misconduct, harassment, or violation of prescribed recovery procedures.

Siddartha further highlighted the importance of procedural safeguards for borrowers during the repossession process. He advised that where a borrower voluntarily surrenders a vehicle, it is essential to obtain a written acknowledgement confirming the transfer of possession. In addition, borrowers should ensure that a detailed inventory is prepared documenting the condition of the vehicle and recording any personal belongings present inside the vehicle at the time of surrender.

Read more: https://www.business-standard.com/finance/personal-finance/what-are-your-rights-as-borrower-when-bank-tries-to-repossess-your-vehicle-126061600719_1.html

Last Updated on 17 June, 2026