Legal validity of sarfaesi - vivekananda agro products pvt ltd
Saikat Sen
(Querist) 24 August 2013
This query is : Resolved
Dear Sir/Madam,
Vivekananda Agro Products Pvt Ltd a Oil Mill having 3.05 acres of land on which the oil mill is situated. The classification of the land is "suna "(agricultural land). The Oil Mill was established in the year 2004 and oil milling activity is continuing till date.
Please advice whether equitable mortgage can be created on the said land and SARFAESI can be possible for bank in case of default of the loan.
Thanks and regards
Saikat Sen
Devajyoti Barman
(Expert) 24 August 2013
Yes, if a deed of mortgage can be executed and registered then you can proceed to grant loan.
You can grant loan on hypothecation of machinery as well.
Securitisation Act is applicable if you are a bank or an NBFC.
Rajendra K Goyal
(Expert) 24 August 2013
If the title papers of land is available, equitable mortgage can be created. Mutation is to be registered in the revenue records for mortgage.
Loan is for Industry hence Secularization Act is applicable if the loan is from Bank or NBFC.
