Special economic zone property-attachment

Nitin Panchal (Querist) 13 June 2012 This query is : Resolved
Whether banks/FI's can take possession of the SEZ plots mortgaged to bank under SARFAESI ?
Is there any notification pertains to SEZ protecting the owners of the SEZ plots against banks/FI.

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c.p.s. ramachary (Expert) 13 June 2012
Mr. Nithin Panchal,

Generally SEZ plots are taken on long lease basis. Say for 15 or 30 years. These lease hold rights (i.e. the enjoyment rights) are mortgaged by the lessee subject to written consent of the lessor of the plots. The industrial sheds are erected by the lessee at his own costs. The shed and machinery are hypothecated to secured creditor in addition to mortgage of leasehold rights. Therefore the bank/FI can take possession of the same and sell the hypothecated shed and plant and machinery as well as the remaining period of lease hold rights. If lease expired and not extended by the lessor, then, the bank/FI cannot sell the leasehold rights. There is no exemption in the Act or any other Law for the time being in force for SEZ plots against enforcement under Se. 13 of SARFAESI Act as in case of agricultural lands.

Shonee Kapoor (Expert) 14 June 2012
Yes, they can/

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Guest (Expert) 14 June 2012
No exemption. When you are free to mortgage, why the bank should not be free to realise their debt by attaching that property?

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