Sarfaesi act 2002

arvind (Querist) 01 April 2013 This query is : Resolved
(1) As per Chapter III of SARFAESI ACT 2002 Point 13 (Enforcement of security interest) sub point 3(A)If, on receipt of the notice under sub-section (2), the borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate within one week of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower.

(2) Rule 18 of Income-tax (Certificate Proceedings) Rules 1962 provides as under:
“18. No sale under this Schedule shall take place on a Sunday or other general holiday recognised by the State Government or on any day which has been notified by the State Government to be a local holiday for the area in which the sale is to take place”.

(3) The auction of the said property is decided and the same is published in news papers. Bank also sticks a note by the side walls of bank premises and ATM centre display the name of borrower and his guarantor along with the minimum price of the property.
(a) Bank shows attitude for the auction as if property or the person, which is being auctioned? So they have right to advertise the thing which is being auctioned.
(b) Auction date is over which was 29/03/2013 (Good friday), bank should have removed the posters for the auction by now. But bank has not yet done that.
(c)As per rule 18 of income tax rules of proceedings, was the auction date valid?
(d)Most importantly, as per Chapter III of SARFAESI ACT 2002 Point 13 (Enforcement of security interest) sub point 3(A), the notice was served in Jan 2012, the outstanding of the notice and the printed bank statement from the bank differed by 70 to 80 000, borrower responded to the zonal office by regd a/d letter and then no reply from the zonal office and local branch till now. Was the auction of the property was lawful?
(d)Where should be contacted for these irr-regularities.

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