Securitisation and reconstruction of financial assets and enforcement of security interest act, 2002
SAMIYAPPAN(KABILAN)
(Querist) 18 November 2016
This query is : Resolved
please provide details:
Which legal act in banking allows to sell unsecured educational loan to ARC(Asset reconstruction company),Like RELIANCE ARC?
R.K Nanda
(Expert) 18 November 2016
academic query.
Rajendra K Goyal
(Expert) 18 November 2016
Academic query, state material facts of the problem if any.
How are you concerned with the query?
Guest
(Expert) 18 November 2016
for the words "securitisation company", "reconstruction company",
"securitisation or reconstruction company" , "securitisation company or the
reconstruction company" or "securitisation company or a reconstruction company",
wherever they occur, the words "asset reconstruction company" shall be substituted;
This amendment was done by Act 44 of 2016 which was published in Gazette on 12 Aug 2016
There were various further amendment in the said act too done by Act 44 of 2016
To avoid your entire confusion best way is to get new Bare Act copy which incorporates amendment done by Act 44 of 2016
And read entire Act fresh you will get ans. to all your question easily
Guest
(Expert) 18 November 2016
So same act that is
"Securitisation and reconstruction of financial assets and enforcement of security interest act, 2002"
updated version which clearly states as updated by Act 44 of 2016 (or Sep 2016 edition) you purchase and read whole Act and all your queries will be solved automatically .
J K Agrawal
(Expert) 18 November 2016
If the SARFAESI fails to answer you, please go through Contract Act, Stamp Act, Registration Act, Limitation Act, DRT Act, Companies Act, Banking Lokpal Act, Reserve Bank of India Act and so on....
You will find that ARC can do only that which is permitted by SARFAESI only.
Kumar Doab
(Expert) 18 November 2016
Subsequent to the posts of Mr. Madhu, Mr. Agarwal,you may pls post full facts of the matter, as suggested by Mr. Goyal.
SAMIYAPPAN(KABILAN)
(Querist) 19 November 2016
PLEASE READ BELOW AND ANSEWR TO MY QUERY.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
From Wikipedia,the free encyclopedia
The Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (also known as the Sarfaesi Act) is an Indian law .
It allows banks and other financial institution to auction residential or commercial properties to recover loans.
[1] The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.
[2]Under this act secured creditors (banks or financial institutions) have many right for enforcement of security interest under section 13 of SARFAESI Act, 2002.
If borrower of financial assistance makes any default in repayment of loan or any installment and his account is classified as Non performing Asset by secured creditor,then secured creditor may require before expiry of period of limitation by written notice to the borrower for repayment of due in full within 60 days by clearly stating amount due and intention for enforcement.
3)Where he does not discharge dues in full within 60 days, THEN WITHOUT INTERVENTION OF ANY COURT OR TRIBUNAL Secured creditor may take possession(including ale,lease,assignment) of secured asset, or takeover management of business of borrower or appoint
manager for secured asset or without taking any of these action may also proceed
against guarantor or sell the pledged asset, if any.
Summary
The law does not apply to unsecured loans, loans below ₹100,000 or where remaining debt is below 20% of the original principal.
This law allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their nonperforming
assets to
ARCs. Banks are allowed to take possession of the collateral property and sell it without the permission of a court.
MY QUERIES:
1)Which legal act in banking allows to sell unsecured educational loan to ARC(Asset reconstruction company),Like RELIANCE ARC?
Rajendra K Goyal
(Expert) 19 November 2016
Academic query, discuss with your tutor.
