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The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

Central

An Act to regulate securitisation and reconstruction of financial assets and enforcement of security interest and to provide for a Central database of security interests created on property rights, and for matters connected therewith or incidental thereto.

Act number
54 of 2002
Ministry
Ministry of Finance
Department
Department of Financial Services
Enacted
17 Dec 2002

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

61 sections

  1. Section 1Short title, extent and commencement.
  2. Section 2Definitions.
  3. Section 3Registration of asset reconstruction companies.
  4. Section 4Cancellation of certificate of registration.
  5. Section 5Acquisition of rights or interest in financial assets.
  6. Section 5ATransfer of pending applications to any one of Debts Recovery Tribunals in certain cases.
  7. Section 6Notice to obligor and discharge of obligation of such obligor.
  8. Section 7Issue of security by raising of receipts or funds by asset reconstruction company.
  9. Section 8Exemption from registration of security receipt.
  10. Section 9Measures for assets reconstruction.
  11. Section 10Other functions of asset reconstruction company.
  12. Section 11Resolution of disputes.
  13. Section 12Power of Reserve Bank to determine policy and issue directions.
  14. Section 12APower of Reserve Bank to call for statements and information.
  15. Section 12BPower of Reserve Bank to carry out audit and inspection.
  16. Section 13Enforcement of security interest.
  17. Section 14Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset.
  18. Section 15Manner and effect of take over of management.
  19. Section 16No compensation to directors for loss of office.
  20. Section 17Application against measures to recover secured debts.
  21. Section 17AMaking of application to Court of District Judge in certain cases.
  22. Section 18Appeal to Appellate Tribunal.
  23. Section 18AValidation of fees levied.
  24. Section 18BAppeal to High Court in certain cases.
  25. Section 18CRight to lodge a caveat.
  26. Section 19Right of borrower to receive compensation and costs in certain cases.
  27. Section 20Central Registry.
  28. Section 20AIntegration of registration systems with Central Registry.
  29. Section 20BDelegation of powers.
  30. Section 21Central Registrar.
  31. Section 22Register of securitisation, reconstruction and security interest transactions.
  32. Section 23Filing of transactions of securitisation, reconstruction and creation of security interest.
  33. Section 24Modification of security interest registered under this Act.
  34. Section 25Asset reconstruction companyor secured creditors to report satisfaction of security interest.
  35. Section 26Right to inspect particulars of securitisation, reconstruction and security interest transactions.
  36. Section 26ARectification by Central Government in matters of registration, modification and satisfaction, etc.
  37. Section 26BRegistration by secured creditors and other creditors.
  38. Section 26CEffect of the registration of transactions, etc.
  39. Section 26DRight of enforcement of securities.
  40. Section 26EPriority to secured creditors.
  41. Section 27Penalties.
  42. Section 28[Omitted.].
  43. Section 29Offences.
  44. Section 30Cognizance of offence.
  45. Section 30APower of adjudicating authority to impose penalty.
  46. Section 30BAppeal against penalties.
  47. Section 30CAppellate Authority.
  48. Section 30DRecovery of penalties.
  49. Section 31Provisions of this Act not to apply in certain cases.
  50. Section 31APower to exempt a class or classes of banks or financial institutions.
  51. Section 32Protection of action taken in good faith.
  52. Section 33Offences by companies.
  53. Section 34Civil court not to have jurisdiction.
  54. Section 35The provisions of this Act to override other laws.
  55. Section 36Limitation.
  56. Section 37Application of other laws not barred.
  57. Section 38Power of Central Government to make rules.
  58. Section 39Certain provisions of this Act to apply after Central Registry is set up or cause to be set up.
  59. Section 40Power to remove difficulties.
  60. Section 41Amendments to certain enactments.
  61. Section 42Repeal and saving.