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Pendyala Vasudeva Rao (Advocate)     30 December 2011

Banking

Dear Expert!

Is SUFAESI act  applya ti a House constructed in a land without layout approval and coversion approval !

It is agricultural land as per revenue records.



Learning

 2 Replies

H.M.Patnaik (Proprietor)     31 December 2011

Dear Friend, 

The Act you have referred to is SURFAESI Act which vests power on the lending bankers/ FI to repossess the mortgaged asset of the borrowers in case of default. Now, in case of default by borrower in the instant case, the lending institution, can take steps  to recover their dues invoking provisions of the said Act irrespective of the fact that te house mortgaged to them stands on agricultural land. 

1 Like

RAJU O.F., (Advocate)     04 January 2012

In the instant case, bank can take action under SARFAESI Act and sell the house property, in spite of the defects of the house site, etc. but the purchaser must be prepared to face the consequences and the measures for its rectifications.


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