Can the borrower claim the property back?

This is a rare but possible scenario called the 'Right of Redemption'.

The Law

Under Section 13(8) of the SARFAESI Act, the borrower has the right to clear all dues and redeem the property at any time before the publication of the auction notice (amended in 2016). However, in practice, legal disputes sometimes arise where borrowers rush to court right before the auction.

Does the Sale get Cancelled?

Once the auction is successfully concluded and the Sale Certificate is registered, the sale is absolute. The borrower cannot claim it back. However, if the borrower gets a stay order from the DRT (Debt Recovery Tribunal) *before* the sale is confirmed, the auction can be stalled or cancelled, and your money will be refunded (usually without interest).