Professional Documents
Culture Documents
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m This Act allows to lay hand on the securities. Not applicable in
respect of clean loans.
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m BIFR Cases ± Cases already referred to BIFR can be called
back if 75% of lenders agree for that. Even if matter is
pending with BIFR, the lender can take possession of security.
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Provisions of SARFAESI Act 2002
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£ t li i l r I t
3. Whr th mt. i l th 20% f th priipl
itrt.
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Sale of Charged Securities
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Receipt of notice by Borrower
If after receiving possession notice, the borrower makes any
representation or raises any objection, the secured creditor shall
consider such representation or objection. If secured creditor ±
objection / representation not tenable, shall communicate within
one week of receipt, the reasons for non ± acceptance of objection
/ representation to the borrower.
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Action by DRT
months)
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Appeal to DRAT ± Deposit of Amt. before appeal
Sale of Assets
m Sale by way of public tenders or through public auction has
to be backed by public notices in two newspapers one of
which in local vernacular language.
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m Minimum notice period
m Reserve Price
m Offer Price
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m Sale will be confirmed after deposit of 25% by the highest
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Summary of Time Periods in SARFAESI Act
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Central Registry
m Central Govt.- Set up Central Registry-
Registration of following transactions.
m (i)Securitisation & Reconstruction of Fin.
Assets
m (ii)Creation of security interest under
SARFAESI Act
m Filing of details of transaction- Within ` days
m Delay-for next ` days-on payment of = times
of prescribed fees.
!odification & Satisfaction of charge
m Within ` days. !odification- additional `
days- Fees = times of fees.
m Satisfaction-Notice to secured creditor- to
show cause within =i days why satisfaction be
not recorded as initialled.
m Penalties- (Sec Ô`) Rs.G for each day of
delay for reg./mod./satisfaction.
m Penalties-Non-compliance of RBI Directives-
Fine of Rs. G lacs- then Rs. = per day
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