Sarfaesi Act

vishwas shenoy (Querist) 31 October 2008 This query is : Resolved
Hi,

I would like to know in detail about this SARFAESI act. i'm confused whether this act is about converting the Loan into securities to sell them off for the purpose of realising the amount now or is it about selling the securities in the loan which are classified as NPA.

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legaleagle (Expert) 31 October 2008
hi there, i can help you in detail . kindly call me at 09872784202..

Murali Krishna (Expert) 31 October 2008
This is an Act to weed off the bad debts/outstandings of the banks. Simply put, Banks can now without recourse to the regular mechanism of civil courts/DRT, directly recover the money from the properties (securities)of defaulters by auctioning them. Any appeal lies to DRT, however on the deposit of certain % of the outstanding.

J. P. Shah (Expert) 01 November 2008
Condition of depositing certain amount has been done away with when a debtor appeals to DRT against action of bank under the said act.

Manish Singh (Expert) 01 November 2008
no, the percentage of amount was 75 ?% of the NPA which was struck down by the apex court but now amendment to this effect has been done and thus it has been reduced to sum % of the debt.

sarfaesi is applicable only to non performing assets not to other debts.

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