Advocate N.K. Verma - Banking & DRT Advocate in High Court | DRT | Chandigarh | Punjab | Haryana | Himachal Pradesh


The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was enforced in 2004. It allows banks and financial institutions to auction properties (residential and commercial) when borrowers fail to repay their loans. It enables them to recover or reconstruct the loans due.It also enables bank to recover their Non-Performing Assets (NPAs) without the intervention of courts.

N.K. Verma & Associates as a firm, is constituted by a bunch of Legal professionals, Financial experts as well as Banking experts who are mastered in their own areas yet have the capability to pool their expertise to build for you the best legal solution which  attends to your financial and business needs. We base your recoveries upon Securitisation, Security Enforcement  or on Asset Reconstruction depending  upon  your financial priorities – minimizing your losses and maximizing your returns. Thus we build CustomisedFinancial Solutions and achieve them through legal pathways.

How SARFAESI works? - N.K. Verma & Ass.

If a borrower defaults on repayment of loan for six months at stretch, banks give him a 60-day period to start repaying.On failure to do so, banks declare the loan as an NPA and auction it for the recovery of the debt.Once a loan is declared as non-performing asset, bank can take actions under SARFAESI act, to recover the loan money.

N.K. Verma & Associates experts know the details of law and legal procedures so as to provide you with appropriate reliefs  in no time.

Banks have following powers under SARFAESI Act:

  1. Take possession of assets (Commericial or residential, fixed or moving assets) without requiring court order.
  2. Auction / Sale them.
  3. Change the administration/ Management of those assets.
  4. If the other party sells away the mortgaged asset to third party, bank can order to surrender that asset.


  • SARFAESI applies only to loans above Rs.10 lakhs.
  • Applies to all state and multi-state co-operative banks
  • Applies only to those assets “mortgaged/secured” to get the loan.
  • Agricultural land is exempted from SARFAESI attachment.
  • The provisions of this Act applies to loans which are classified as NPA.
  • NPA loan accounts amounting to less than 20% of the principal and interest are not covered under this Act.

The SARFAESI Act isn’t applicable for:

  • Money or security falling under the Indian Contract Act or the Sale of Goods Act, 1930.
  • Any conditional sale, hire-purchase, lease or any other contract in which there is no security interest.
  • Any rights of the unpaid seller under Section 47 of the Sale of Goods Act, 1930.
  • Any properties not liable to attachment or sale under Section 60 of the CPC, 1908.

Rights of Borrowers

  • The borrowers can at any time remit the dues and avoid losing the security before the sale is concluded.
  • Authorised Officer will be penalized forunhealthy or illegal act done by him.
  • The borrowers get compensation for the default of an Officer.
  • The borrowers can approach the Debts Recovery Tribunals(DRT) for getting their grievances 

Our Legal Service extends to the borrowers also. We know what is best for them at any point of time or any point of legal proceedings. We have avoided  our innumerable borrower clients from losing their valuable securities and also enabled compensation as a relief for our them in cases where the other party or officers were in default.

Methods of Recovery under the SARFAESI Act:

There are 3 methods of getting relief under the Act in case of unpaid loans etc.

  • Securitisation
  • Asset Reconstruction
  • Enforcement of security without the involvement of the court- It enables banks and financial institutions to:
    1. Issue notices to any individual who has obtained any of the secured assets from the borrower to surrender the due amount to the bank.
    2. Claim any sum due to the borrower from any debtor of the borrower.

We at N.K. Verma & Associates are fully equipped with a long experience in this field and thus we know which method of recovery is best in accordance with your case and your priorities. Our expertise enables us in providing you with the legal solutions you desire. 

Advocate N.K. Verma - Banking & DRT Advocate in High Court | DRT | Chandigarh | Punjab | Haryana

Chamber No. 71, Pb & Hr. High Court Chandigarh, 160001