A Bengaluru man’s flat worth ₹1.20 crore was auctioned after he missed 3 EMIs after losing his job. Many people have doubted the authenticity of this viral story shared to create awareness on financial planning.
Bengaluru: It is scary to hear that someone has to lose his house worth crores just because of not being able to pay EMI (monthly installment) for three months. One such story is becoming increasingly viral on social media. Meenal Goyal, a chartered accountant from Bengaluru, has shared this alleged incident that happened with her neighbor Rajesh on LinkedIn. She says that she is sharing this story to warn people about the importance of financial planning.
According to the post, Rajesh’s eight years of hard work went waste due to a lay-off. Rajesh lost his job in October 2025. Due to this, he could not pay EMI for three consecutive months till January 2026. The post claims that the bank sent him a notice under the SARFAESI Act and auctioned the flat within 60 days. This flat, which was bought for Rs 1.20 crore, was auctioned for only Rs 95 lakh. Despite paying EMIs continuously for eight years, the bank deducted his dues of Rs 80 lakh and Rajesh was left with only Rs 15 lakh.
Meenal wrote in her post, ‘Until you repay the loan completely, you are not the owner of that house, but just a tenant.’ He advised that people should maintain an emergency fund for difficult times and if ever there is a problem in paying the installment, they should contact the bank and try to restructure the loan.
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However, when a user named Amit Arora shared this post on X (formerly Twitter), the issue became bigger and sparked a debate. Many people raised questions on the veracity of this story. People were saying that in a place like Bengaluru, the price of an 8 year old flat should become less than the buying price, this does not seem believable. At the same time, experts in banking matters say that it is not so easy to auction a house under the SARFAESI Act if only three months’ installment is missed. This entire process takes at least six months. Many users have also accused the person posting it of spreading wrong information.