Saturday, June 16, 2012

Banks Step up Loan Recovery by Auctioning Mortgaged Property

Under the SARFAESI act, the banks are now increasingly relying on the use of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002 to recover their dues. The Act empowers banks and financial institutions to auction mortgaged residential/ commercial property when borrowers fail to repay their loans but now one can find many
possession notices in banks/newspaper even for dues as low as Rs 1.5-2 lakhs.

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