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Sarfaesi act - regularization of cc a/c

Page no : 2

Anjuru Chandra Sekhar (Advocate )     01 March 2015

"if borrower is not liked by the official he can classify the loan a/c as NPA with some justification and then can invoke SARFAESI by Demand Notice for payment within 60 days. the secured property could be put to sale within next 10 days if the official is bend upon it."

 

@Raju. Advocate.  It is not true to say that secured asset could be put to sale with in next 10 days, because there are few more notices to be issued under Security Interest Enforcement Rules,2002 which are called Possession Notice, Prior to Sale Notice, Sale Notice and Auction notice.  There is some time gap to be maintained between one notice and other between those notices.  So it is generally a 1-2 years process for banks to go up to Auction Notice after Demand Notice is issued.

 

However, it is absolutely true that banker can exercise his discretion arbitrarily by targetting the borrowers whose faces he does not like and forgiving the borrowers whose faces he likes by quickening the proceedings and delaying the proceedings.  That is purely Arbitrariness.  Hope you have seen what I had written about Dicey in the above post.  THESE DAYS, THE DISCRETION IS NOT A RESULT OF ABSENCE OF LAW (AS IN THE CASE OF DAYS OF DICEY), BUT A RESULT OF USING AND INTERPRETING THE LAW THE WAY ONE LIKES TO FAVOR SOME AND TO HARM SOME.  THAT IS THE PROBLEM WITH ADMINISTRATIVE LAW IN 21st Century.


(Guest)

1)No fresh notice is required to be served by the bank.

 

2) Depends at the sole discretion of the bank. NPA status can change only on actual revival of your cc account by the bank, not automatic.

1 Like

Vijay (owner)     08 May 2015

Respected Law Experts,

Your valuable advice has helped me a lot in dealing with my account. I further need your advice on the following issues:

  1. Once the 60 days demand notice period under sarfaesi act is over approximately after how many days time does the banker takes symbolic/ physical possession of the mortgaged property?
  2. What happens to the stock of goods at the time of taking possession by the banker? Can it be also seized along with the property?
  3. What happens if the person doesn’t have proper stock at that time?

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