Bare Acts

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

2002 · Ministry of Finance · In force · synced 03 Sept 2026

I — PRELIMINARY

1.Short title, extent and commencement 2.Definitions

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

3.Registration of 3[asset reconstruction companies]4.Cancellation of certificate of registration 5.Acquisition of rights or interest in financial assets 5A.Transfer of pending applications to any one of Debts Recovery Tribunals in certain cases 6.Notice to obligor and discharge of obligation of such obligor 7.Issue of security by raising of receipts or funds by 2[asset reconstruction company]8.Exemption from registration of security receipt 9.Measures for assets reconstruction 10.Other functions of 1[asset reconstruction company]11.Resolution of disputes 12.Power of Reserve Bank to determine policy and issue directions 12A.Power of Reserve Bank to call for statements and information 12B.Power of Reserve Bank to carry out audit and inspection

III — ENFORCEMENT OF SECURITY INTEREST

13.Enforcement of security interest 14.Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset 15.Manner and effect of take over of management 16.No compensation to directors for loss of office 17.2[Application against measures to recover secured debts]17A.[Making of application to Court of District Judge in certain cases.]18.Appeal to Appellate Tribunal 18A.Validation of fees levied 18B.[Appeal to High Court in certain cases.]18C.Right to lodge a caveat 19.Right of borrower to receive compensation and costs in certain cases

IV — CENTRAL REGISTRY

20.Central Registry 20A.Integration of registration systems with Central Registry 20B.Delegation of powers 21.Central Registrar 22.Register of securitisation, reconstruction and security interest transactions 23.Filing of transactions of securitisation, reconstruction and creation of security interest 24.Modification of security interest registered under this Act 25.9[Asset reconstruction company] or secured creditors to report satisfaction of security interest 26.Right to inspect particulars of securitisation, reconstruction and security interest transactions 26A.Rectification by Central Government in matters of registration, modification and satisfaction, etc 26B.Registration by secured creditors and other creditors 26C.Effect of the registration of transactions, etc 26D.Right of enforcement of securities 26E.Priority to secured creditors

V — OFFENCES AND PENALTIES

27.Penalties 28.[Penalties for non-compliance of direction of Reserve Bank.]29.Offences 30.Cognizance of offences 30A.Power of adjudicating authority to impose penalty 30B.Appeal against penalties 30C.Appellate Authority 30D.Recovery of penalties

VI — MISCELLANEOUS

31.Provisions of this Act not to apply in certain cases 31A.Power to exempt a class or classes of banks or financial institutions 32.Protection of action taken in good faith 33.Offences by companies 34.Civil court not to have jurisdiction 35.The provisions of this Act to override other laws 36.Limitation 37.Application of other laws not barred 38.Power of Central Government to make rules 39.Certain provisions of this Act to apply after Central Registry is set up or cause to be set up 40.Power to remove difficulties 41.Amendments to certain enactments 42.Repeal and saving

The Schedule.(See section 41)

135A81112B141718A1920B232526B26E2930B30D32353841