THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 (Last Updated on 1st January, 2020)

ACT NO. 54 OF 2002 · Enacted [17th December, 2002.] · 61 sections

PRELIMINARY

Section 1.Short title, extent and commencement.

Section 2.Definitions.

REGULATION OF SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS OF BANKS AND FINANCIAL INSTITUTIONS

Section 3.Registration of asset reconstruction companies.

Section 4.Cancellation of certificate of registration.

Section 5.Acquisition of rights or interest in financial assets.

Section 5A.Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases.

Section 6.Notice to obligor and discharge of obligation of such obligor.

Section 7.Issue of security by raising of receipts or funds by asset reconstruction company.

Section 8.Exemption from registration of security receipt.

Section 9.Measures for assets reconstruction.

Section 10.Other functions of asset reconstruction company.

Section 11.Resolution of disputes.

Section 12.Power of Reserve Bank to determine policy and issue directions.

Section 12A.Power of Reserve Bank to call for statements and information.

Section 12B.Power of Reserve Bank to carry out audit and inspection.

ENFORCEMENT OF SECURITY INTEREST

Section 13.Enforcement of security interest.

Section 14.Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset.

Section 15.Manner and effect of take over of management.

Section 16.No compensation to directors for loss of office.

Section 17.Application against measures to recover secured debts.

Section 17A.[Omitted.]

Section 18.Appeal to Appellate Tribunal.

Section 18A.Validation of fees levied.

Section 18B.[Omitted.]

Section 18C.Right to lodge a caveat.

Section 19.Right of borrower to receive compensation and costs in certain cases.

CENTRAL REGISTRY

Section 20.Central Registry.

Section 20A.Integration of registration systems with Central Registry.

Section 20B.Delegation of powers.

Section 21.Central Registrar.

Section 22.Register of securitisation, reconstruction and security interest transactions.

Section 23.Filing of transactions of securitisation, reconstruction and creation of security interest.

Section 24.Modification of security interest registered under this Act.

Section 25.Asset reconstruction company or secured creditors to report satisfaction of security interest.

Section 26.Right to inspect particulars of securitisation, reconstruction and security interest transactions.

Section 26A.Rectification by Central Government in matters of registration, modification and satisfaction, etc.

REGISTRATION BY SECURED CREDITORS AND OTHER CREDITORS

Section 26B.Registration by secured creditors and other creditors.

Section 26C.Effect of the registration of transactions, etc.

Section 26D.Right of enforcement of securities.

Section 26E.Priority to secured creditors.

OFFENCES ANDPENALTIES

Section 27.Penalties.

Section 28.[Omitted.]

Section 29.Offences.

Section 30.Cognizance of offence.

Section 30A.Power of adjudicating authority to impose penalty.

Section 30B.Appeal against penalties.

Section 30C.Appellate Authority.

Section 30D.Recovery of penalties.

MISCELLANEOUS

Section 31.Provisions of this Act not to apply in certain cases.

Section 31A.Power to exempt a class or classes of banks or financial institutions.

Section 32.Protection of action taken in good faith.

Section 33.Offences by companies.

Section 34.Civil court not to have jurisdiction.

Section 35.The provisions of this Act to override other laws.

Section 36.Limitation.

Section 37.Application of other laws not barred.

Section 38.Power of Central Government to make rules.

Section 39.Certain provisions of this Act to apply after Central Registry is set up or cause to be set up.

Section 40.Power to remove difficulties.

Section 41.Amendments to certain enactments.

Section 42.Repeal and saving.