Banking / Finance Law
SARFAESI Action
A process allowing banks and financial institutions to recover secured debts by directly seizing and selling the mortgaged security, without first going to court.
The SARFAESI law gives secured lenders like banks a powerful, largely court-independent route to recover dues on a defaulted secured loan — issuing a demand notice, and if unpaid, taking possession of and auctioning the secured asset (commonly property) to recover the outstanding amount.
Borrowers do retain a right to challenge specific procedural steps before the Debt Recovery Tribunal, even though the initial recovery action itself doesn't require a prior court order.
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