Purchase of land under sarfaesi
deepa
(Querist) 14 August 2013
This query is : Resolved
I want to purchase this piece of land from a bank under SARFAESI. The said land in question was agricultural land and the Borrower was given authority by the land authorities to utilise land for industrial purpose within a time period of 5 years.
However the loans taken by the Borrower turned NPA and the bank now wants to sell this land on as is where is basis. The time limit given for setting up industry has expired. Does this mean the land has become agricultural land and it is exempt from SARFAESI?
How do I go about purchasing this land?? Any advice?
ajay sethi
(Expert) 14 August 2013
since the land has not been used for industrial purpose within period of 5 years then permission for non agricultural use has lapsed unless extended by the authorities . dont purchase said land .
deepa
(Querist) 14 August 2013
thnax for your reply Mr. Sethi.
Actually I have just got some clarification from the purchaser. it appears that the Borrower had purchased the land from the Govt. The Govt. had acquired the land and allotted the same to the Borrower for some specific purpose and that the said land cannot be sold.
However the Borrower availed loans from the bank and secured the loans with the said land. The borrower could not repay the loan and the loans turned into NPA. The Bank now wants to sell the said land under these circumstances to recover its loan.
In such a scenario, how do I go about purchasing the said land? Will purchase under SARFAESI over ride the local land laws under which the land was allotted to me by state govt. land authority?
deepa
(Querist) 14 August 2013
minor correction in the last para. In such a scenario, how do I go about purchasing the said land? Will purchase under SARFAESI over ride the local land laws under which the land was allotted to the Borrower by state govt. land authority?
Nadeem Qureshi
(Expert) 14 August 2013
purchase under SARFAESI may be some issues in future, its our opinion, decision is your
Rajendra K Goyal
(Expert) 14 August 2013
a)Land could not be sold
b)was agricultural given for particular purpose which was not fulfilled.
c)Industry could be settled with in 5 years on it and time permitted has passed.
d) If Dispute arises, court may decide it agricultural land due to c.
e) If si, it would beyond SARFAESI scope.
It is not confirmed whether the Govt. has given permission to mortgage this land to the Bank or not.
The deal give rise to issues which may not be favorable. Better avoid.
R.K Nanda
(Expert) 14 August 2013
repeated query.
