sarfaesi on home loan below 10 lakhs

Dear Harish,

Certainly the case cannot be contested on the grounds mentioned above.

Mr.Harish,

will you quote the  Number and date of the circular of RBI advising the banks to approach Lok Adalats for dues bellow Rs 20 lakcs for Home Loans,personal loans etc.On going through the provisions of RBI it will be proper to advise you.

Mr Harish, Could you please provide some info on where you the lok adalats.. ?

I could think of Item j) only as below under the ACT, where Bank regulated by RBI and HDFC regulated by NHB can not issue as Notice under section 13 ( I believe ,I am not a lawyer) if the amount is not exceeded as
 per the limit.

(j) any case in which the amount due is less than twenty per cent of the principal amount and
interest thereon.

CHAPTER VI
MISCELLANEOUS
31. Provisions of this Act not to apply in certain cases
The provisions of this Act shall not apply to--
(h) any security interest for securing repayment of any financial asset not exceeding one lakh
rupees;
(i) any security interest created in agricultural land;
(j) any case in which the amount due is less than twenty per cent of the principal amount and
interest thereon.

https://www.drat.tn.nic.in/Docu/Securitisation-Act.pdf

Could be an old one, if any amendments was made to 

CHAPTER VI
MISCELLANEOUS
31. Provisions of this Act not to apply in certain cases

You have to go to DRT., however lender can not take forcible possession. After issue of notice if possession is not given they have to take permission of Dt court.

Banks can take physical possession without going to Dist.Court/ Judicial Magistrate.  Only if resistance from borrower, they approach Magistrate Court under Sec.14 of the Act. 

Whether Sarfaesi Act is applicable when the loan Amount is below 10 Lac…

It is very urgent…

Akshay (Mob: 8149951110)

Dear Mr. Akshay,

SARFAESI Act is applicable when the total outstanding is more than One Lakh.

https://www.drat.tn.nic.in/Docu/Securitisation-Act.pdf

CHAPTER VI

MISCELLANEOUS
31. Provisions of this Act not to apply in certain cases
The provisions of this Act shall not apply to--
(h) any security interest for securing repayment of any financial asset not exceeding one lakh
rupees;
(i) any security interest created in agricultural land;
(j) any case in which the amount due is less than twenty per cent of the principal amount and
interest thereon.

Does that mean , if interest is due more than Rs 1Lakh then the bank has right to go for NPA.

Is n't contradicting the case (j) on Miscellaneous in Chapter VI

Whether Sarfaesi Act is applicable when the loan Amount is below 10 Lac…

It is very urgent…

Akshay (Mob: 8149951110)

Dude,

I am not a lawyer, go through  the ACT. using the below link.

https://www.drat.tn.nic.in/Docu/Securitisation-Act.pdf

Page 34:.. MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 2nd February, 2007

Go TO Page 36:

I assume there are examples provided

Where the application is a borrower
and the amount of debt due is Rs.
10 Lakhs and above
Rs. 500 for every Rs. 1 Lakh
or part thereof
(b) Where the applicant is a borrower
and the amount of debt due is Rs.
10 lakhs and above.
Rs. 5000+Rs. 250 for every
Rs. 1 lakhs or part thereof
in excess of Rs. 10 Lakhs
subject to a maximum of Rs.
1,00,000
(c) Where the applicant is an
aggrieved party other than the
borrower and where the amount of
debt due is less than Rs. 10 lakhs
Rs. 125 for every Rupees
One lakh or part thereof.
(d) Where the applicant is an
aggrieved party other than the
borrower and where the amount of
debt due is Rs. 10 lakhs and above
Rs. 1250 + Rs. 125 for every
Rs. 1 lakh or part thereof in
Excess of Rs. 10 Lakhs
subject to a maximum of Rs.
50,000/-
(e) Any other application by any
person
Rs. 200/-

and Could not find anything that says act is only applicable with dues more than Rs 10 Lakhs.

https://drtsarfaesi.blogspot.com/2011/01/sarfaesi-act-2002debt-recovery-tribunal.html

Better to take an advice from experts. Look for Phone Number on blog

Banks can and will take action under SARFAESI Act on home loan accounts, as the property values are escalated and bank officials are very much interested for selling such properties.  If you have any specific query, it can be answered.

then the bank has right to go for NPA.

NPA is a different concept. RBI has provided certain guidelines as when an account is to be declared an NPA; while 31(j) deals with exemptions.