LIGHTHOUSE on Follow the Rules, scrupulously – 18/09/2015

Any omission, whether due to inadvertence or otherwise, to follow the mandatory rules of procedure enshrined in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [SRFAESI Act] read with Security Interest (Enforcement) Rules, 2002 [Rules] can be fatal.

Under the Rules, it is mandatory for the secured creditor to give a notice of 30 days to the borrower prior to selling an immovable property, being a secured asset. Further no sale of immovable property can take place prior to expiry of 30 days from the date on which the secured creditor advertises the sale in newspapers. Further Section 13(8) of SRFAESI Act says if the borrower pays the dues together with all costs and charges prior to the date fixed for such sale, the sale cannot take place.

                                                                                                         …….. Read more