The time limit for issuing a possession notice under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 in India is typically 60 days from the date of the notice demanding the repayment of the loan or the possession of the secured assets.
Here's a general timeline of the SARFAESI process in India:
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Demand Notice: The lender (usually a bank or financial institution) first issues a demand notice to the borrower, demanding the repayment of the outstanding loan amount. This notice typically gives the borrower 60 days to repay the debt.
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Response to Demand Notice: If the borrower fails to repay the outstanding debt within the stipulated 60-day period, the lender can take further action.
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Possession Notice: The lender can issue a possession notice to the borrower after the expiration of the 60-day period mentioned in the demand notice. This notice informs the borrower that the lender intends to take possession of the secured assets.
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Time Limit for Possession Notice: The SARFAESI Act does not specify a specific time limit for issuing a possession notice after the demand notice. However, it is common practice for the possession notice to be issued within a reasonable time after the borrower's failure to comply with the demand notice. Typically, this is done promptly to initiate the process of taking possession of the secured assets.
It's essential to note that the SARFAESI Act and its procedures can vary in specific cases and depending on the circumstances. Therefore, it is advisable for borrowers and lenders to seek legal counsel and refer to the specific provisions of the SARFAESI Act and any relevant amendments for precise details regarding timelines and procedures in a particular case. Additionally, the legal landscape may change over time, so it's essential to consult with legal professionals for the most up-to-date information.
