Understanding the SARFAESI Act, 2002: Constitutionality, Key Definitions, and Framework for Asset Recovery in Indian Banking
The SARFAESI Act, 2002 is a cornerstone law empowering banks and financial institutions in India to recover non-performing assets swiftly, primarily by allowing the enforcement of security interests without prior court intervention. Indian courts have affirmed the constitutional validity of the Act, ensuring its mechanisms are both effective and just. Preamble and Overview The full…
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Supreme Court on section 14(1) of the SARFAESI ACT: Magistrates can appoint an advocate commissioner to assist them in in execution of the order passed by them
Supreme Court while delivering judgment [NKGSB Cooperative Bank Limited vs Subir Chakravarty | SLP (C) 30240 OF 2019 | 25 February 2022 Coram: Justices AM Khanwilkar and Justice CT Ravikumar] said that the District Magistrate or the Chief Metropolitan Magistrate can appoint an advocate commissioner to assist him/her in the execution of the order passed…
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SC rules SARFAESI act applies to cooperative banks as well
The Supreme Court on Tuesday (May 05, 2020) held that cooperative banks come under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act 2002 (SARFAESI Act). The SARFAESI Act law empowers lenders to seize and sell defaulters’ assets. A five members constitution bench of Justices Arun Mishra, Indira Banerjee, Vineet Saran, M.R.…
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Secured assets possessed under the SARFAESI Act, shall be displayed by creditors: RBI
RBI on Monday asked all the Regulated Entities (REs) of the Reserve Bank to display information on secured assets possessed under the SARFAESI Act, 2002. “As a part of the move towards greater transparency, it has been decided that the Regulated Entities (REs) of the Reserve Bank which are secured creditors as per the Securitisation…
Read article Ombudsman Framework: Awards, Appeals, and Suspension of the Scheme
The Ombudsman Scheme provides a mechanism for passing an Award in favor of a complainant and establishes a structured right to appeal against such Awards or certain rejections; further, the scheme can be suspended by the Reserve Bank of India (RBI) if necessary for regulatory reasons. Passing of an Award Right to Prefer Appeal Suspension…
Key features of amendment 2016 to SARFAESI ACT 2002
Latest: A few sections relating to registration of security interest by secured and other creditors, the effect of registration of transactions, right of enforcement of securities, and priority to secured creditors were not notified in the said amendment. In view of the foregoing Section 17 to Section 19 of the 2016 Act have been notified…
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