Banking

Dear Friend, 

The Act you have referred to is SURFAESI Act which vests power on the lending bankers/ FI to repossess the mortgaged asset of the borrowers in case of default. Now, in case of default by borrower in the instant case, the lending institution, can take steps  to recover their dues invoking provisions of the said Act irrespective of the fact that te house mortgaged to them stands on agricultural land. 

In the instant case, bank can take action under SARFAESI Act and sell the house property, in spite of the defects of the house site, etc. but the purchaser must be prepared to face the consequences and the measures for its rectifications.