Sarfaesi act on agricultural land
Priti
(Querist) 22 March 2017
This query is : Resolved
Hi experts
My father gave our residential property to one of our relative as bank garantee of Rs 90 lakhs loan. The loan was taken for a poultry farm which is on agricultural land. Now he was unable to pay loans and outstanding is 60 lakhs. Bank has declared it as NPA and has sent a notice of 60 days under surfaesi act in which at serial no. 1 is farm and no 2 is residential urban property. I believe there is no CLU of land. But agricultural land on which farm is constructed is being used for commercial purpose and no cultivation is going on. I want to know is Surfaesi act applicable on this land and can bank auction this land first. Actually we want to save our residential property. Pls suggest. My father has become victim without fault by giving residence as bank gaurntee.
Adv. Yogen Kakade 
(Expert) 22 March 2017
Unfortunately the property offered to the bank towards the guarantee can be attached by the bank after getting the court order. Poultry business is considered as agro based business.
Rajendra K Goyal
(Expert) 22 March 2017
In case of default of borrower, guarantor is liable to pay.
Ms.Usha Kapoor
(Expert) 24 March 2017
Yes! In case of default by the borrower Guarantor will have to pay.
