What is Kurki? Property Seizure for Unpaid Loans in India
Kurki Process in India: Property Seizure for Unpaid Loans
In India, thousands of properties get seized due to non-payment of loans taken. Many houses, shops, and farming lands get auctioned due to the owner defaulting. When an owner defaults and banks initiate the process to recover their money, the process is called Kurki.
However, in conventional terms, Kurki is associated with the seizure of farmlands that were kept as mortgage while taking loans by farmers. But it is not just limited to farmlands; it also extends to various other properties.
How is the Kurki Process Initiated?
Whenever a property owner defaults, the bank initiates a recovery process. However, being a country that follows the procedure established by law, India does not allow banks to just go and seize the property.
The banks first have to take permission from the court to seize the property by showing all the valid documents and the owner's inability to pay the money. Then the court passes a Kurki Warrant, and only then can the bank initiate the official Kurki process with the help of officials and authorities.
Laws Governing Kurki in India
Section 60 of the Code of Civil Procedure (CPC) explains what kinds of property can be taken and sold to recover money from someone who owes a debt.
Section 83 of the Code of Criminal Procedure (CrPC) allows the government or court to take and attach the property of a person who is hiding or has been declared a proclaimed offender. This can include people who have broken the law and are avoiding arrest or legal action.
A Kurki Warrant typically includes:
• Information about the court and its legal authority
• Identities of the debtor and the lending party involved
• Details of the borrowed sum and the payment failure
• Description of assets marked for confiscation
• Directions given to officers for enforcement
• Defined period allowed to take the action
Assets That Can Be Seized Under Kurki
• Agricultural or residential land
• Houses, buildings, and constructed properties
• Goods or business inventory
• Cash, cheques, bills of exchange, promissory notes
• Government securities, bonds, and shares in corporations
• Any movable or immovable property that can be legally sold
How is Kurki Enforced?
The process of enforcing Kurki depends on the type of property and what the court orders. The court may require one or more actions, such as taking possession of the property, appointing a person to manage or supervise the asset, or issuing a written order that prevents the owner from selling or transferring the property.
When it comes to land or buildings, the district collector plays an important role in carrying out these actions. For movable assets like vehicles or goods, enforcement can include physically taking control, announcing public auctions to sell the property, assigning officials to collect rent or income, and issuing formal orders to block any sale or transfer of the property.
Why is Kurki Considered Mentally Depressing?
Kurki is more than just a legal action; it brings many challenges for borrowers and their families. When farmers lose their land, they lose their main source of income. Similarly, people living in cities may lose their homes or business places, making life very difficult.
On top of this, borrowers have to deal with legal matters like attending court, paying fees, and facing penalties if they don’t follow the court’s orders. The stress of losing property can cause serious emotional problems such as anxiety, depression, and trauma, especially when families have to move from their homes.
Moreover, when Kurki becomes known to others, borrowers may feel embarrassed or isolated, especially in small communities where reputation is important. Losing property also means losing the ability to earn money, which can push borrowers deeper into debt, especially if they don’t have support or other ways to make a living.
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