SARFAESI ACT 2002
THE SARFAESI ACT IS A VERY EFFECTIVE AND USEFUL FOR RECOVERY OF DEBT. DRT AND DRAT BOTH ARE IMPORTANT PART FOR RECOVERY OF DEBT.
Posted March 3,2019 in Education.
The SECURITISATION AND RCONSTRACTION OF FINANCIAL ASSESTS AND ENFORCEMENT OF SECURITIES INTREST ACT-2002, As known as SARFAESI Act Allows to bank and financial institution to auction Residental And Commercial Properties to Recover loans the bank and financial institutions ( secured creditors ) have right to enforcement of security intrest under the SARFAESI Act 2002.if borrower can not pay installment and makes any default in repayment and his account is classified as NON-PERFORMING ASSETS by bank or financial insttution then they are required before expiry of period of limitation by writing notice.generally, notice time period is 60 days under the SARFAESI Act-2002.
dispute is arrived between bank or financial institution and borrower then they are gong with the company act before enforce sarfaesi act 2002 is enact.
there is an lots of loopholes in this act and this loopholes were mis-used by borrowers,so government make appoint another committee under Mr.Andhyarujina was appoint examine banking sector reforms and to change in the legal system.
the committee recommended to enact the new lagislation for establishment securitisation law and empower the bank and financial institution to take possession of non performing assets.
thats why SARFAESI actfor the first time empower recover they dues without interfere of court
SARFAESI Act is a very effective and useful for the recovery of debt. SARFAESI Act cover any asset,movable or immovable,given as a security whether by the way of mortgage.the SARFAESI Act-2002 gives power of seized or desist to bank. bank or financial institute can given notice in writing to defaulting borrowers required it to discharge it liabilities within 60 days.if borrower fails to comply with notice then bank or financial institute take laid down action.
under the SARFAESI Act bank or financial institution (secured creditors) given notice to the borrower and the time period of notice is 60 days. notice period is divided in to two part
SARFAESI ACT 2002 _ NOT APPLICABLE
SARFAESI Act are very important to the recovery of debt and specially useful for the bank or financial institution to recover debt without interfere of court .but some other securities for the borrower are under the laid down