UNDERSTANDING SARFAESI IN RESPECT OF SECURITY ENFORCEMENT

AUTHORS – MAHASHWETA BHATTACHARYA & SHASHANK KUMAR, STUDENTS AT GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

BEST CITATION – MAHASHWETA BHATTACHARYA & SHASHANK KUMAR, UNDERSTANDING SARFAESI IN RESPECT OF SECURITY ENFORCEMENT, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 1341-1345, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

One of the important parameters to measure the growth of a nation is its economy and the growth in economy is well depends upon the functioning of the banking regulations. One of the key problems in the banking sector in India is the Non-Performing Assets. The Non-Performing Assets (NPAs) not only poses threats to bank but it also has a negative impact on the economy. That’s why it become very important to recover loan without any unnecessary delay. Earlier banks had to face long delays from courts to recover loans. So, to cop up with these problems, Parliament passes ‘The Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) and establishes the Debt Recovery Tribunal to especially dealt with issues to recovery of loans from banks. Then in 2002 by the recommendation of Narsimham II committee, legislature passed the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) to recover loan against the secured Assets. In this research paper our aim is to discuss and understand the SARFAESI, the meaning of the key terms like NPAs, Reconstruction of Assets, Constitutional validity of the act and the key provisions of enforcement of security interest under SARFAESI and the borrowers rights.