Legal Question in Banking Law in India

SARFAESI ACT and Town Planning - Municipal Corporation Laws are different, and they do not overlap each other.

SARFAESI ACT, is for quick recovery of debts out of secured assets. However, when such assets are acquired or falls under reservations under the statute, say Land Acquisition Act, Town Planning Act, Land Ceiling Act, etc. then all such assets vestes with the Government free of all encumbrance.

So answer to your questions is, if the immovable property has vested in the Government, then yes SARFAESI Act will not be applicable, because such property is free for encumbrance.

Let me know should you have any questions.

Vivek N Mapara

vnmlaws.com

05.09.2015

Dear Sir / Madam,

Yes, there is no restriction on property being included and covered under the SARFAESI Act.

Regards,