Can Fin Homes Limited Vs State of AP and Others (Andhra Pradesh High Court)
The Andhra Pradesh High Court considered a writ petition filed by Can Fin Homes Limited, a company registered under the Companies Act and functioning under the regulatory supervision of the National Housing Bank, challenging a notice of attachment and sale of immovable property issued in Form GST DRC-16 dated 12.11.2025 under Section 79 of the GST Act.
The petitioner stated that respondents 5 and 6 had approached it for a housing loan to purchase a residential flat bearing Flat No. 202, Seedhi Vinayaka Residency, Gandhibomma Center, Vidhyadharapuram, Vijayawada. A housing loan of ₹20,00,000 was sanctioned, and respondents 5 and 6 executed a registered equitable mortgage in favour of the petitioner through document No.1723/2020 dated 27.02.2020 by deposit of title deeds.
Subsequently, the third respondent, by proceedings dated 21.05.2025, called upon the petitioner to furnish details of the borrowers’ loan accounts during recovery proceedings relating to tax dues against M/s. Shirdi Sai Enterprises. The petitioner informed the third respondent that the disputed property had already been mortgaged in its favour and that no amount was payable by the petitioner to respondents 5 and 6.
Despite this, the fourth respondent issued a notice of attachment and sale of the immovable property in Form GST DRC-16 dated 12.11.2025 by exercising powers under Section 79 of the GST Act. The petitioner challenged the notice contending that, under Section 26E of the SARFAESI Act, it had priority over all other debts, including revenues, taxes and cesses payable to the Central Government, State Government or local authority.
