{"id":8169,"date":"2020-05-23T15:06:38","date_gmt":"2020-05-23T09:36:38","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=8169"},"modified":"2020-05-23T15:06:38","modified_gmt":"2020-05-23T09:36:38","slug":"sarfaesi-act-2002","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/sarfaesi-act-2002\/","title":{"rendered":"Sarfaesi Act 2002"},"content":{"rendered":"<section class=\"hero-section\" data-type=\"type-1\" data-alignment=\"left\">\n<header class=\"entry-header\"><span style=\"color: #0000ff;\"><strong>Relevance: Prelims: Indian Economy<\/strong><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/initiallaw-150619100919-lva1-app6891\/95\/sarfaesi-act-2002-2-638.jpg?cb=1434708695\" alt=\"SARFAESI Act, 2002\" \/><\/p>\n<p><strong>Why in news?<\/strong><\/p>\n<\/header>\n<\/section>\n<div class=\"entry-content\">\n<p>\u2022 The Supreme Court (SC) has ruled that all co-operative banks in the country could make use of the SARFAESI Act to make recovery against defaulting persons.<\/p>\n<p><b>Recent Ruling:<\/b><\/p>\n<p>\u2022 The SC held that all such cooperative banks involved in the activities related to banking are covered within the meaning of \u2018banking company\u2019.<\/p>\n<p>\u2022 The cooperative banks cannot carry on any activity without compliance of the provisions of the Banking Regulation Act, 1949 and any other legislation applicable to such banks relatable to banking,\u201d the five-judge bench said.<\/p>\n<p>\u2022 In the past, there have been calls to notify non-scheduled urban cooperative banks as \u2018financial institutions\u2019 so they could make use of the Insolvency and Bankruptcy Code, 2016 (IBC) to recover money.<\/p>\n<p><b>About SARFAESI Act:<\/b><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/iilsindia.com\/blogs\/wp-content\/uploads\/2017\/07\/Untitled-2.jpg\" alt=\"SARFAESI ACT, 2002\" \/><\/p>\n<p>\u2022<span style=\"color: #ff0000;\"><strong> SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest)<\/strong> <\/span>Act allows banks and other financial institution to auction residential or commercial properties (of Defaulter) to recover loans.<\/p>\n<p>\u2022 <strong>The Act provides three alternative methods for recovery of non-performing assets, namely: <\/strong><\/p>\n<p>(1) Securitisation, (2) Asset Reconstruction and (3) Enforcement of Security without the intervention of the Court.<\/p>\n<p>\u2022 The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.<\/p>\n<\/div>\n<p><img decoding=\"async\" src=\"https:\/\/assets1.cleartax-cdn.com\/s\/img\/2018\/06\/26142404\/Role-of-SARFAESI-Act-2002.jpg\" alt=\"SARFAESI ACT, 2002- Applicability, Objectives, Process, Documentation\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/d6bca0e3-1a8a-4735-861c-c919a689796e-170123170659\/95\/presentation-on-sarfaesi-actanurag-ghosh16pgdmbfs08-11-638.jpg?cb=1485191326\" alt=\"Presentation on SARFAESI Act_Anurag Ghosh_16PGDMBFS08\" \/><\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Indian Economy Why in news? \u2022 The Supreme Court (SC) has ruled that all co-operative banks in the<\/p>\n","protected":false},"author":1,"featured_media":6714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42],"tags":[392],"class_list":["post-8169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/8169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=8169"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/8169\/revisions"}],"predecessor-version":[{"id":8170,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/8169\/revisions\/8170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/6714"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=8169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=8169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=8169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}