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sarfaesi act

(Querist) 15 September 2009 This query is : Resolved 
Hi All,

Pls advice. Can a bank issue a sarfaesi notice against a property which is not mortgaged with Rs5000/ stamp paper.riven
R.R. KRISHNAA (Expert) 15 September 2009
Yes the bank can issue the notice.

The issue of stamp duty or deficit stamp duty cannot form a ground to reject the recovery proceedings undertaken by the bank.riven
A. A. JOSE (Expert) 15 September 2009
Absolutely right, the Bank can issue notice and initiate proceedings under the SARFAESI againist such property also.riven
vinay manjrekar (Querist) 15 September 2009
But i was told by my lawyer friend that the there is an GO w.e.f 2005 , which says that any equitable mortgage is valid only after it is registered on a Rs5000/ stamp paper. And one of the bank has followed the same procedure of registration for approving loan to one of my friend ?

so what is the GO about then ?
riven
PJANARDHANA REDDY (Expert) 15 September 2009
SOME STATE GOVERNMENTS ARE ISSUING GOS TO INCREASE THE REVENUE OF STAMPS®ISTRATION DEPT, IT CANNOT INFLUENCE THE EFFICACY OF THE SARFAESI. ALL ABOVE MY FRIENDS ARE CORRECT..riven


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