Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

SARFAESI Act · India · enforcement · Effective 2002-06-21

Enables banks and financial institutions to enforce security interest without court intervention, including possession and sale of secured assets.

Official text

Sections, chapters & rules

Section 13(2) — Notice of demand

Secured creditor may require the borrower to discharge liabilities in full within sixty days of notice, failing which enforcement measures under Section 13(4) may be taken.

Section 13(4) — Enforcement measures

On default after the 13(2) notice period, the secured creditor may take possession, take over management, or assign the secured asset.

Section 14 — Assistance of District Magistrate

Secured creditor may request the Chief Metropolitan Magistrate or District Magistrate for assistance in taking possession of secured assets.

Section 17 — Application to Debts Recovery Tribunal

Any person aggrieved by measures under Section 13(4) may apply to the DRT within forty-five days.