More than twenty tenants of a building in Bengaluru were forced to vacate their homes after Canara Bank acted against the owner of the building, they reside in. The bank has taken possession of the property due to the owner's failure to repay the loan taken against it. According to representative of Canara Bank, the owner Mr SM Shivanna, businessman from Tumakuru, availed a loan of Rs 6 crores from the bank in 2016 by giving the building as collateral for the same.
More than twenty tenants of a building in Bengaluru were forced to vacate their homes after Canara Bank acted against the owner of the building, they reside in. The bank has taken possession of the property due to the owner's failure to repay the loan taken against it. According to representative of Canara Bank, the owner Mr SM Shivanna, businessman from Tumakuru, availed a loan of Rs 6 crores from the bank in 2016 by giving the building as collateral for the same.
The affected tenants are now struggling to find alternative accommodation in the city, where rents have skyrocketed in recent years. Many of them have expressed their frustration at the situation, stating that they had been paying rent regularly and were not at fault for the owner's default on the loan.
This incident highlights the vulnerability of tenants in cases where the landlord defaults on loans taken against the property. The tenants may be left with no option but to vacate the premises, even if they have been paying rent regularly and have not violated any terms of the rental agreement.
In such cases, the tenants may be entitled to compensation for their losses. However, this process can be time-consuming and may involve legal proceedings. It is essential for tenants to be aware of their rights and to ensure that their rental agreements provide for adequate protection in such situations.
The Bengaluru incident also underscores the need for better regulation of the rental market in the city. The lack of a comprehensive rental policy has led to an increase in rents, making it difficult for tenants to find affordable accommodation.
Additionally, the absence of clear guidelines for resolving disputes between landlords and tenants has left tenants vulnerable to exploitation. To address these issues, the government needs to develop a rental policy that provides for fair and affordable rents, as well as clear guidelines for dispute resolution. The policy should also ensure that tenants are not unfairly evicted due to the default of the landlord on loans taken against the property.
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