Security Interest (Enforcement) Amendment Rules, 2018 notified

The Central Government has, vide G.S.R. 1040 (E), in exercise of powers conferred by sub-section (1) and clause (b) of sub-section (2) of Section 38, read with sub-section (4) (10) and (12) of Section 13 of the SARFAESI Act, 2002 (54 of 2002), made the Security Interest (Enforcement) Amendment Rules, 2018, to further amend the Security Interest (Enforcement) Rules, 2002.

In the Security Interest (Enforcement) Rules, 2002, (hereinafter referred to as the said rules), in Rule 6, sub-rule (2), for the first proviso, the following proviso shall be substituted, namely:-

“Provided that if the sale of such secured assets is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix II-A to be published in two leading news papers, including one in vernacular language having wide circulation in the locality.”;

In Rule 6, after sub-rule (3), the following sub-rule shall be inserted, namely:–

(4) The authorised officer shall upload the detailed terms and conditions of the sale of the movable secured assets on the web-site of the secured creditor, which shall include,

(a) details about the borrower and the secured creditor;

(b) complete description of movable secured assets to be sold with identification marks or numbers, if any, on them;

(c) reserve price of the movable secured assets , if any, and the time and manner of payment;(d) time and place of public auction or the time after which sale by any other mode shall be completed;

(e) deposit of earnest money as may be stipulated by the secured creditor;

(f) any other terms or conditions which the authorsed officer considers it necessary for a purchaser to know the nature and value of movable secured assets.”

In the said rules, in Rule 8, sub-rule (6), for the proviso, the following proviso shall be substituted, namely:

“Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix IV-A to be published in two leading newspapers including one in vernacular language having wide circulation in the locality.”;

In Rule 8, for sub-rule (7), the following sub rule shall be substituted, namely:–

(7) every notice of sale shall be affixed on the conspicuous part of the immovable property and the authorised officer shall upload the detailed terms and conditions of the sale, on the web- site of the secured creditor, which shall include;

(a) the description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor;

(b) the secured debt for recovery of which the property is to be sold;

(c) reserve price of the immovable secured assets below which the property may not be sold;(d) time and place of public auction or the time after which sale by any other mode shall be completed;

(e) deposit of earnest money as may be stipulated by the secured creditor;

(f) any other terms and conditions, which the authorized officer considers it necessary for a purchaser to know the nature and value of the property.”

Ministry of Finance

Join the discussion

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.