Empowering Recovery with SARFAESI Act Solutions
Our team understands the intricacies of SARFAESI Act proceedings and can assist you in utilizing its provisions effectively for debt resolution and asset recovery.
The SARFAESI Act grants the powers of ‘seizure’ to banks. Under these provisions, the banks may issue notices in writing to the defaulting borrower insisting the discharge of its liabilities within 60 days. If the borrower fails to respond to such notice, the concerned bank may:
- Take possession of the security in lieu of the loan.
- Sell, lease or assign the right over the security.
What is notice 13(4) and notice 13(2)?
Notice 13(4): Following the 13 (2) notices, the Bank can issue Notice 13(4), often referred to as the “Symbolic Possession Notice,” under the SARFAESI Act, 2002. This notice informs the borrower that the specified assets/properties now legally belong to the bank. The bank may proceed to physically take possession of the asset/property or initiate legal proceedings, such as asset auctions, to recover the outstanding loan amount.
Notice 13(2): It is issued in the event that a borrower fails to repay secured debt or any instalment, and their account is classified as a non-performing asset by the secured creditor, the borrower may be notified in writing to settle their liabilities within sixty days. Failure to do so empowers the secured creditor to exercise their rights as stated in sub-section (4).
How FinLender will help you to reply to notices of the SARFASI Act.
- We closely scrutinize the notice issued to the client under 13(2) & 13(4) of the SARFAESI ACT, 2002;
- We advise & assist the client in replying to the notices exhaustively, considering the latest RBI guidelines, Bank circulars, judgments & case studies;
- Taking proper action against any unjustified action of the lender;
- Legal Guidance on safeguarding the mortgaged property of the borrower.
Empower Your Financial Strategy with FinLender’s SARFAESI Act Expertise
Navigate the complexities of the SARFAESI Act with confidence. At FinLender, our seasoned professionals offer comprehensive advisory services, guiding clients through asset securitization, enforcement of security interests, and regulatory compliance. Maximize your financial potential – contact us today.