SARFAESI Act

Q.  Which act allows banks and other financial institution to auction residential or commercial properties to recover loans?
- Published on 16 Feb 17

a. Industrial Disputes Act 1947
b. Foreign Exchange Management Act, 1999
c. Banking Regulation Act, 1949
d. SARFAESI Act, 2002

ANSWER: SARFAESI Act, 2002
 
The Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also k/as SARFAESI Act).

It allows banks and other financial institution to auction residential or commercial properties to recover loans.

The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.

The act was amended by "Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016", passed by Lok Sabha on 2 August 2016.

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    Discussion

  • Deepak Jhamb   -Posted on 19 Jul 19
    If the person before getting his state govt job defaulter of Govt bank. Bank has already possession his property under sarfaeai act 2002. Than bank can take action against his job like filling civil suit for atteched his monthly pay, write the letter against his department etc.

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