Sarfaesi act

Saikat Sen (Querist) 18 June 2012 This query is : Resolved
When agriculture land is given as security in non agriculture loan.May the land can be taken as SARFAESI Act when the loaN turns into NPA.

Thnks & Rgrds,

Saikat

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G. ARAVINTHAN (Expert) 18 June 2012
Property cannot be taken for auction as it is exempted.. Read Section 31

The provisions of this Act shall not apply to any security interest created in agricultural land;

Devajyoti Barman (Expert) 19 June 2012
Yes it is mortgage which is enforceable irrespective of the nature of security.

Shonee Kapoor (Expert) 19 June 2012
Yes, it can be taken.

Regards,

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

K.K.Ganguly (Expert) 19 June 2012
No.As per Section 31(i) of SARFAESI Act, 2002, provision of SARFAESI ACT, 2002 is not applicable when any Security Interest is created in agricultural land.

So, it can not be taken by the creditor.

RAJU O.F., (Expert) 19 June 2012
Although agricultural properties are exempted from enforcement under SARFAESI Act, if the said property is not used for any agricultural activities, and if it is used for any commercial/ domestic purposes, the said exemption may not be helpful.

J K Agrawal (Expert) 19 June 2012
Mr Barman says that it is mortgage so it can be enforced, not under SARFAESI but under general Law. It is proper idea.

I want to add that agricultural land is not attachable under CPC also and attachment of it is possible if the debt is recoverable as "Arrears of Land Revenue'.

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