(Expert) 10 January 2015
1. S. 31 (i) of the SARFAESI ACT, 2002 will be attracted. In that the provision of such Act will not apply in such case if the land mortgaged is still an agricultural land.
2. If need be for further deliberations and direct private consultation you can get my contact details by clicking my name shown in the L.H.S. margin of this reply format.
Rajendra K Goyal
(Expert) 11 January 2015
SARFAESI ACT provisions not applicable to Agriculture.land.
(Expert) 12 January 2015
What is meant by notified area in this case? This property might have been referred by the Bank to its panel advocate who might have examined this aspect. Hence do not jump into conclusions and hand-over all the papers to a local lawyer and get his opinion.
(Expert) 13 January 2015
1. Property mortgaged as per SARFAESI Act,2002 is enforceable,
2. Agricultural property is not mortgageable.
(Querist) 14 January 2015
RESPECTED FRIENDS @K.K.GANGULY MY QUESTION IS, A AGRICULTURAL LAND WHICH IS IN NOTIFIED AREA AND BUILDING PLAN HAS BEEN SECTIONED BY PRESCRIBED AUTHORITY ,THIS PROPERTY CAN BE MORTGAGE BY BANK OR NOT ? IF YES THAN IT WILL BE ENFORCEABLE UNDER SARFAESI ACT OR NOT?
(Expert) 14 January 2015
1. As per Section 31(i) of SARFAESI Act,2002 Security interest can not be created on Agricultural land,
2. Before the DRT at Kolkata, there are several instances when the borrower has alleged that the mortgaged property is agricultural land for which Bank can not sell the same,
3. DRT has rejected those applications if it is found that there has been no agriculture done on the said land recently and allowed the sale,
4. In your case building also has been constructed with appropriate sanction,
5. So, it appears that the said property can be mortgaged since the land can no longer be treated as agricultural land,
6. It is not understood as to hoe an agricultural land has been notified, who notified it and what has been mentioned in the said notification regarding creation of mortgage of land in the said notified area,
7. There is nothing specifically mentioned in SARFAESI Act,2002 barring the Bank in mortgaging land located in Notified Area.