sarfaesi act

vinay manjrekar (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

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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

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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

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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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