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DRT & SARFAESI · 11 November 2025

SARFAESI 101: What Every Borrower Should Know

The SARFAESI Act gives banks a fast-track to recovery of secured debt. Borrowers have limited but meaningful remedies — provided they act in time.
SARFAESI 101: What Every Borrower Should Know

SARFAESI applies to secured creditors with an outstanding of over one lakh rupees, where the borrower has been classified as a non-performing asset in accordance with RBI directions.

A Section 13(2) notice provides sixty days to pay. If the borrower fails to comply, the secured creditor may take symbolic possession under Section 13(4). Actual possession, and sale, follow due process including notice of thirty days before sale.

The borrower's principal remedy is an application under Section 17 before the DRT within forty-five days of the measure complained of. Appeal lies to the DRAT under Section 18 subject to statutory deposit.