If you are an affected auction purchaser or 3rd party in Chennai for a SARFAESI Act affected property, it is critical that you take immediate legal advice. Several important issues pertaining to sale of secured asset, valuation of the property, effect of registration certificate and many more will be involved in your case and you must ensure that the lawyers you choose are well versed with all these aspects of litigation.
Rajendra DRT Law Firm is the right choice for any individual or organization who are affected by SARFAESI Act and require assistance with a bank auction in Chennai Tamil Nadu India. Our team of experts has an extensive knowledge and experience of the regulations and laws pertaining to this area, as well as understanding how best to protect your interests. We understand that this can be a stressful situation, and we are here to provide you with solutions tailored to meet your needs.
Rajendra DRT Law Firms for SARFAESI Act Affected Auction
The SARFAESI Act lays down a mechanism by which banks and financial institutions as Secured Creditors enforce their security interests by taking possession of the assets. Once the loan account of the borrower is classified as a non-performing asset (NPA), the Authorised Officer designated by the secured creditor issues a demand notice u/s 13(2) to the borrower calling upon them to pay off the outstanding amount within 60 days failing which the secured creditor may take possession of the secured asset u/s 13(4).
A borrower can raise objections to the notice and the secured creditor must consider and reply to all such objections in writing u/s 13(3A) before proceeding with the possession u/s 13(4). In addition, the borrower can apply u/s 17 of the SARFAESI Act to the Debt Recovery Tribunal to challenge the action taken u/s 13(4) in 45 days from the date of the notice if the possession is effected.
DRT Lawyers in Chennai for SARFAESI Act Affected Auction Purchase
The process of enforcement of a SARFAESI Act secured asset is governed by the Security Interest (Enforcement) Rules, 2002 that set out a procedure for action by a secured creditor to recover its security interests. This procedure includes obtaining a valuation of the property from an approved valuer and setting a reserve price for the sale of the property in accordance with such valuation.
Depending on the nature of the security interest, the Authorised Officer is required to fix the reserve price at which the sale will be conducted and the secured creditor is also bound to notify the sale to the borrower prior to the auction. In the event of a successful sale, the lender will be entitled to recover the full amount from the borrower as per the terms of the agreement.
In most of the cases, the auction proceeds exceed the market value of the property and the secured creditor has purchased the property at a discounted rate as compared to the original market value. This has led to complaints that borrowers are being mistreated by the banks and their recovery process is getting hampered.
Contact Top Advocates Advice For SARFAESI Act Affected Auction
Advocates who can help you to avoid a bad situation by filing a writ petition before the High Court are essential. It is a common practice that the High Courts have been hesitant to entertain Writ Petitions challenging SARFAESI proceedings and it is only in a few cases where the High Courts have granted reliefs or stay orders on the matter.
It is therefore very important that you take immediate legal advice from experienced and top ranking Debt Recovery Tribunal Attorneys to ensure that your interests are protected and the matter ends up in a positive outcome. If you have a dispute with the bank relating to SARFAESI Act or the DRT, do not hesitate to reach out to our Advocates who are at your service for a free consultation today!
In conclusion,the Rajendra DRT Law Firm has a wealth of knowledge, experience and resources to offer those affected by the enforcement of SARFAESI Act in Chennai Tamil Nadu India. This firm provides effective legal advice and representation for clients dealing with debt recovery tribunals and creditors. They are committed to helping their clients understand their rights under the law, and resolve their disputes as quickly as possible.
Other Legal Information: Advocates For NPA Recovery & SARFAESI Act Advice For Banks in Chennai
