Got a SARFAESI notice from your bank?
Banks send a notice under Section 13(2) of the SARFAESI Act when a secured loan becomes a non-performing asset (NPA). It gives you 60 days to pay the full amount. After that, under Section 13(4), the bank can take possession of the property you gave as security. TellBrief turns your notice into the amount, the exact last date, and the steps open to you.
Brief yours freeWhat TellBrief tells you
- The amount due and the last date to pay, worked out from the notice date
- What happens after 60 days, in plain words
- Your right to object in writing under Section 13(3A), and to appeal to the Debts Recovery Tribunal
- Questions to ask the bank, like whether instalments are possible
Words you'll see
- Section 13(2)
- The demand notice. You get 60 days to pay the whole secured debt.
- Section 13(3A)
- You can object in writing. The bank must reply with reasons if it rejects your objection.
- Section 13(4)
- After 60 days the bank can take possession of the property, manage it or sell it.
- NPA
- Non-Performing Asset: a loan whose instalments stayed unpaid for more than 90 days.
- DRT
- Debts Recovery Tribunal. You can appeal against possession here, generally within 45 days.
Questions
Can I sell my property after a 13(2) notice?
Not without the bank's written consent. Section 13(13) stops sale, lease or transfer of the secured property after the notice.
Can the bank take my house immediately?
No. The notice gives 60 days. Only after that can the bank act under Section 13(4), and you can appeal to the DRT.
Does TellBrief give legal advice?
No. It explains what your notice says and what the law generally allows. For your case, talk to a lawyer or your District Legal Services Authority.
General information, not legal, medical or financial advice.
Brief yours free