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SARFAESI allows banks to take possession of and sell secured property without going to court. Borrowers have specific rights at each stage — but strict deadlines apply.
Last reviewed: October 2026 · General information only, not legal advice.
| Stage | What happens | Your right / time limit |
|---|---|---|
| Section 13(2) notice | Loan declared NPA; bank demands payment | 60 days to pay |
| Section 13(3A) | Borrower objects to the notice | Bank must reply with reasons within 15 days |
| Section 13(4) | Bank takes possession (symbolic or physical) | Securitisation Application to DRT within 45 days SARFAESI 17 |
| Section 14 | Bank seeks help of the DM / CMM for physical possession | Challenge before DRT |
| Sale / auction | Sale notice before auction (at least 30 days under the rules) | Pay dues before publication of the auction notice to redeem SARFAESI 13(8) |
The borrower gets 60 days from the date of the notice to repay the outstanding amount. During this period, the borrower can also send an objection under Section 13(3A), which the bank must answer within 15 days.
A borrower can redeem the property by paying the full dues with costs before the publication of the auction notice under Section 13(8). The auction can also be challenged before the DRT through a Securitisation Application if the procedure was not followed.
45 days from the date on which the measure under Section 13(4), such as taking possession, was taken.
No. Section 31 of the SARFAESI Act excludes security interest created on agricultural land.
Every case turns on its own facts. Speak to Advocate Ajay Mishra for advice specific to your situation — in person at IP Extension (Delhi) or Vaishali (Ghaziabad), by phone, or by video call.