The Rajasthan High Court has directed the local Police to immediately take appropriate steps to restore possession of a mortgaged property to a bank, after it alleged that the borrowers had forcibly reoccupied the property despite it having been taken over under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. [2026 LiveLaw (Raj) 261]

Justice Sanjeet Purohit observed that failure to restore possession in such circumstances would amount to a "clear case of defiance of law" and directed the police to act within 15 days.

For context, the petitioner-bank that had granted loan to the respondents which was defaulted and declared an NPA. Subsequently, proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, was initiated and the petitioner took possession of the mortgaged property with the aid of police.

As alleged by the bank, the respondents broke into the property and forcibly entered into it, which amounted to assault.

It was submitted that despite repeatedly approaching the concerned SHO for restoration of the property, no action was taken till date. Hence, the petition was filed seeking directions to the police.

After hearing the contentions, the Court directed the police to take immediate action for restoring the possession of the mortgaged property to the petitioner, within 15 days.

“…if petitioner – bank is not allowed to take possession of said property, it will amount to clear case of defiance of law and, therefore, the Superintendent of Police, Bhilwara and SHO, Kotdi, District Bhilwara are under an obligation to act in consonance with the provisions of law for restoring the possession of petitioner given that the petitioner has already approached them.”

Accordingly, the petitioner was disposed of.

Title: Roha Housing Finance Pvt. Ltd. & Ors. v State of Rajasthan & Ors.

Citation: 2026 LiveLaw (Raj) 261

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