"if borrower is not liked by the official he can classify the loan a/c as NPA with some justification and then can invoke SARFAESI by Demand Notice for payment within 60 days. the secured property could be put to sale within next 10 days if the official is bend upon it."
@Raju. Advocate. It is not true to say that secured asset could be put to sale with in next 10 days, because there are few more notices to be issued under Security Interest Enforcement Rules,2002 which are called Possession Notice, Prior to Sale Notice, Sale Notice and Auction notice. There is some time gap to be maintained between one notice and other between those notices. So it is generally a 1-2 years process for banks to go up to Auction Notice after Demand Notice is issued.
However, it is absolutely true that banker can exercise his discretion arbitrarily by targetting the borrowers whose faces he does not like and forgiving the borrowers whose faces he likes by quickening the proceedings and delaying the proceedings. That is purely Arbitrariness. Hope you have seen what I had written about Dicey in the above post. THESE DAYS, THE DISCRETION IS NOT A RESULT OF ABSENCE OF LAW (AS IN THE CASE OF DAYS OF DICEY), BUT A RESULT OF USING AND INTERPRETING THE LAW THE WAY ONE LIKES TO FAVOR SOME AND TO HARM SOME. THAT IS THE PROBLEM WITH ADMINISTRATIVE LAW IN 21st Century.
