SARFAESI Section 13(4) possession notice checklist

Key time limits

Before taking possession

• 60 days from the 13(2) notice have ended for every borrower and guarantor.
• Every representation or objection has been answered with reasons.
• The outstanding amount has been updated for payments received since the 13(2) notice.
• The property description matches the mortgage documents and the 13(2) notice exactly.

Possession notice (Rule 8(1))

• Prepared as nearly as possible in the form in Appendix IV of the Rules.
• Delivered to the borrower and affixed on the outer door or a conspicuous part of the property.
• Photographs of the affixed notice, with date and place, kept in the file.
• A panchnama or possession report signed by the authorised officer and witnesses.

Publication (Rule 8(2))

• Published in two leading newspapers, one in the local language with circulation in the area.
• Published as soon as possible and in any case within 7 days of taking possession.
• Newspaper cuttings with names and dates kept in the file.

Physical possession and custody

• Where physical possession needs assistance, a Section 14 application has been filed and an order obtained.
• An inventory of movables found in the property is prepared and signed, and the borrower is told how to collect them.
• Keys, locks and seals are recorded, and the property is insured and kept secure.
• Valuation by an approved valuer is arranged before the sale notice (Rule 8(5)).