SARFEASI ACT
• The act has two parts, first part stands for securitization and reconstruction of financial assets and
other part is enforcement of security interest.
• Eligible assets under the act may be enforced without intervention of court or tribunal with the laid
down procedure under the act.
• If party failed to deposit the amount, possession of charged/ secured assets is obtained from the
bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is
mandatory.
• No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the
secured creditors representing not less than 3/4th in value of the amount outstanding.
• If borrower restricts the bank to take physical possession of secured assets, petition is filed under
section 14 of the act to the CMM/DM praying to get the physical possession of the assets.
• No action is taken before 45 days of taking possession, as 45 days time is given under the act to
appeal against the action of the bank.
• Appeal with DRT can be filed by the party only after taking possession of the assets under section
17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil court
does not jurisdiction to entertain any suit under provision of the act.
• Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed
by 30 days publication of sale through auction/ tender notice of these assets in the vernacular
newspaper and national daily.
• 60 days notice is served under 13(2) of SARFEASI
• Action is taken for the dues exceed Rs.1 lakh
• Agriculture Land and lease hold property can not be enforced
• Appeal is made within 45 days of possession of secured asset

• 30 days notice is served indicating there in the sale of asset
• 30 days publication is made for auction of secured assets
• Possession of property is obtained under 13(4) SARFEASI Act
• Publication of possession of property -within 7 days from the date of possession.
• SERFEASI ACT 2002 does not apply to the following assets –
A -lien on any goods, money or security.
B -A pledge of moveable.
C – Creation of any security in any aircraft or vessel.
D – Any property that can not be attached under any other law.
E – Any security interest for securing repayment any financial asset not exceeding Rs.1 lac.
F – Any case in which the amount due is less than 20% of the principal amt.
G – Any interest created in agriculture land.