Car sold for price of cheap shoes: Rs 199! Saturday, Apr 27, 2013, 9:30 IST | Place: Mumbai | Agency: DNA Nupur Anand Yuga Chaudhari One day in February 2008, Suhas Chand's car 'disappeared' from outside his office. One day in February 2008, Suhas Chand’s car ‘disappeared’ from outside his office. Frantic inquiries revealed it was towed away by agents of the auto finance company because he had defaulted on his loan repayment for three months. No bank official contacted him in the days following, alleges Chand, whose real name has been withheld as the case is sub judice. Two years later, he got a legal notice claiming Rs2,46,177 was the loan outstanding and interest thereon. The car was sold in August 2010 and fetched just Rs 199, he was told. Even selling a car in scrap will fetch at least Rs30,000, say experts. Turns out, the car was sold for Rs30,381, but the bank deducted Rs30,182 towards parking charges as it was lying in a garage for 914 days. A pre-used car dealer says banks generally issue a recall notice on defaults for three months, and are not allowed to repossess without prior notice. Chand insists that the loan outstanding was around Rs50,000 at the time of repossession and that he had defaulted for just two months. It is not an isolated case, say second-hand vehicle dealers. Blame it on third parties to which lenders outsource recovery who mismanage the process. “It’s not that the bank deliberately tries to undersell a car. There are no norms laid down for the recovery process. As a result, the car gets devalued gradually,” , says a dealer. Aneesh Gurudas, an advocate, says there is no stipulated period in which a repossessed car has to be resold.