Finance company sent recovery agents at midnight to seize vehicle, sells without giving notice; Supreme Co
- Posted on September 21, 2026
- By Business News Today
- 1 Views
- 1 min read
In brief
A landmark Supreme Court ruling has held Cholamandalam Investment and Finance Company liable for illegal vehicle repossession practices. The company seized and auctioned a truck owner's asset without providing mandatory notice as stipulated in their lending agreement and Reserve Bank of India regulations. The court ordered compensation of approximately Rs 15 lakh, emphasizing the need for stricter enforcement of RBI recovery guidelines and protecting borrowers from predatory collection tactics.
Summary auto-generated by AI from the original publisher's content. Editorial standards.
Finance company sent recovery agents at midnight to seize vehicle, sells without giving notice; Supreme Co
Cholamandalam Investment and Finance Company has been ordered to pay a truck owner around Rs 15 lakh in total after seizing and selling his vehicle without the notice required under its own loan agreement and RBI guidelines. A high court order dismissing the case on delay was set aside, and the RBI was asked to ensure its recovery guidelines are genuinely enforced.
