SARFAESI Act 2002
(Securitization and Reconstruction of Financial Assets and enforcement of security Interest Act 2002)
•Applicable in J&K •
•Power of SARFAESI is exercised by Chief Manger and above but board of director of bank can delegate powers even to lower rank official . •
•Condition for SARFESEI
•A/c should be NPA
•Min out standing more than one lac •Document with in limitation period
•Security should be charge to he bank
•If loan given by more than one bank the consent of 60% lender of the value is required.
•SARFAESI Act Not applicable :
•1. Balance up to 1 lac
•2. borrower repaid 80% of the due amount
•3. possession of agriculture land and ship not be taken.
•Procedure
•1.given notice of 6o days to borrower and guarantor before taking possession.
•2. Replied to any objection of the borrower with in 15 days
•3. Possession with the help of district Magistrate
•4. Public Notice in two news papers before taking possession in one week.
•5. Borrower can file application with DRT with in 45 days of taking over position of the bank without depositing any amount.
•Both bank and borrower can file appeal to DRT.
•Period of appeal for 3o days
•If borrower appeal has to deposit 5o% DRAT can reduce to it 25 %.
•Sale of Securities
•3o days notice to the borrower before sale
•Public auction before 3o days in tow news paper (one in English and one in Hindi or local language ) •
•One who will purchase have to deposit 25 % of amount immediately and rest with in 15 days
