What is SARFAESI Act?
- Blog|Insolvency and Bankruptcy Code|
- 3 Min Read
- By Taxmann
- Last Updated on 1 March, 2022
SARFAESI Act 2002:
- The Act details the procedures for NPAs’ transfer to the asset reconstruction companies for the purpose of asset reconstruction.
- The Act specifies the legal framework for scanning activities in India.
- The Act confers powers to the financial institutions to take custody of the immovable property, which is charged or hypothecated, for debt recovery.
- The Act imposes the security interest without any intervention from the court.
Guide To Insolvency and Bankruptcy Code & Law Relating to SARFAESI/Debt Recovery & Winding up by V.S. Datey. This book elucidates chapter-wise commentary on the Insolvency and Bankruptcy Code, 2016. It incorporates the bare act and regulations framed thereunder along with statutory and judicial happenings. It also covers laws relating to SARFAESI/Debt Recovery and Winding up. The present publication is the 9th edition incorporating all the amendments made up to the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019.
- Asset reconstruction
- Security Enforcement without court’s intervention
- Getting hold of financial assets from bank
- Creating funds from eligible institutional buyers by dint of issuing security receipts to acquire the financial assets
- Fund raising in any legal way
- Financial asset acquisition along with taking over the mortgaged assets (such as building, land etc)
Security Interest Enforcement:
The above information must have cleared your doubts about “what is sarfaesi act”.
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