Legal Question in Banking Law in India

Whether Agri land given as collateral for business loan can attached under surfesee act

Asked on 7/11/12, 5:50 am

5 Answers from Attorneys

Aniruddha Pawse Aniruddha.P.Pawse Advocates

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yes

Answered on 7/11/12, 7:02 am

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Sanjay Kalra Sanjay Kalra & Associates

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YES. Bank will not take anything as a Collateral security if the bank is not be able to attach at a later stage.

Answered on 7/11/12, 7:15 am

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RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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as per rule, for a business loan, agricultural land cannot be kept as collateral. it is surprising that how the bank did the same. is the borrower an agriculturist?

Answered on 7/11/12, 9:35 am

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J. Radhakrishnan independent Practice

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There is no prohibition of mortgaging agricultural land as collateral security for a loan for commercial purposes. However banks do not prefer such security. The reason is that such land cannot be sold under the SARFAESI Act. That is all

Answered on 7/11/12, 10:15 pm

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