Trademark - Ad interim injunction order is not warranted in case of two competing cancer drugs whose name are derived from combining publici juris & whose consumer are doctors & not laymen: HC (See 'Legal Desk') Companies Act, 2013 - High Court u/s 339 is vested with powers to provide relief of interim protection to creditors from alienation of properties belonging to company undergoing liquidation : HC (See 'Legal Desk') Gowda launches 'APNA UREA - Sona Ugle' brand of HURL (See 'Corp Brief') NITI Aayog, Ladakh ink MoU for infra development (See 'Corp Brief') Guidelines for rights issue of units by a listed Infrastructure Investment Trust (InvIT) (See 'Dashboard') Guidelines for rights issue of units by a listed Real Estate Investment Trust (REIT) (See 'Dashboard') Format for Statement indicating Deviation or Variation in the use of proceeds of issue of listed non-convertible debt securities or listed non-convertible redeemable preference shares (NCRPs) (See 'Dashboard') China’s Great Wall Motors acquires General Motors Talegaon plant for an undisclosed sum Piramal to sell healthcare insights & analytics business to Clarivate Analytics for USD 950 mn Reliance Communications insolvency: Chinese creditors to delay vote due to New Year from January 25 GeM Samvaad - Users share feedback & inputs (See 'Corpbrief') Exemption from clubbing of investment limit for foreign Government agencies and its related entities (See 'Dashboard') IBC - Liquidation of corporate debtor is preferable if no resolution plan gets acceptance of committee of creditors within time allotted for insolvency process : NCLT (See 'Legal Desk') IBC - If Promoters of corporate debtor fails to avail benefit of being MSME within due time of EoI, Resolution Professional or NCLT cannot be expected to go for fact finding exercise to uncover correct classification of insolvent: NCLAT (See 'Legal Desk') IBBI amends Voluntary Liquidation Process Regulations, 2020 (See 'Corp Brief') Options in Goods - Product Design and Risk Management Framework (See 'Dashboard') Norway looks for possible projects to invest in India (See 'Corp Brief') DCGI approves Wockhardt's antibiotic EMROK in Intravenous & oral forms to treat superbug infections Hinduja Group pulls out from race to acquire Jet Airways; only Synergy Group & Prudent ARC Ltd remains ED summons Air Asia CEO Tony Fernandes on January 20 under PMLA IBBI - Voluntary Liquidation Process - Amendment Regulations, 2020 (See 'Dashboard') IBBI - Govt amends Salary, Allowances and other Terms and Conditions of Service of Chairperson and members Amendment Rules, 2020 (See 'Dashboard') PMLA - If handing over of money laundering case to another counsel is feasible within time, appeal cannot be restored after dismissal for non appearance beyond period prescribed or time allotted: Tribunal (See 'Legal Desk') IBC - Suspension of board of corporate debtor & takeover by Interim Resolution Professional happens without service of order by NCLT or without uploading the order in NCLT website, HC can step in & issue certiorari to set aside admission of insolvency petition: HC (See 'Legal Desk') Budget 2020 - What may cheer up Taxpayers & also FM? (See 'THE COB(WEB)' in TIOL) Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank) Directions, 2018 - Amendment (See 'Dashboard') House Panel invites inputs on Industrial Relations Code, 2019 (See 'Corp Brief') PCRA to hold mega campaign on fuel conservation from Jan 16, 2020 (See 'Corp Brief') Jeff Bezos: Amazon will export USD 10 bn Make in India goods by 2025

SARFAESI Act - No proposal for further amendment: Thakur

Published: Jul 15, 2019

By TIOLCORPLAWS News Service

NEW DELHI, JULY 15, 2019: THE Union MoS for Finance & Corporate Affairs, Mr Anurag Thakur, today in Parliament drew attention to the process of recovering debts under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). He mentioned that the SARFAESI Act does not differentiate between debtors/borrowers on any basis, including the financial status or debt value.

The Central Government administers the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) which allows banks and financial institutions to recover their dues exceeding one lakh rupees by proceeding against secured assets of the borrower/guarantor without the intervention of the court/tribunals. The Government is not involved in commercial decisions or recovery proceedings of banks or financial institutions. As such, to address any concerns about property valuation, there are adequate provisions under Rule 8 (5) of the Security Interest (Enforcement) Rules, 2002 under the SARFAESI Act, that cast a duty on the Authorised Officer of the secured creditor (bank or financial institution) to obtain the valuation of the property from an approved valuer (as defined in the Rules) and, in consultation with the secured creditor, fix the reserve price of the property before putting the property on sale. Any aggrieved debtor/borrower has recourse to filing appeal in the Debts Recovery Tribunal (DRT) against action under the SARFAESI Act and further recourse to appeal against the DRT’s decision is available in the Debts Recovery Appellate Tribunal.

Substantive amendments were made in the SARFAESI Act on August 14, 2016 through the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016, in consultation with stakeholders. At present there is no proposal to amend the SARFAESI Act or the Rules framed thereunder.

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