Enforcement of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002: Key Challenges

Abstract

In India, with the aim of maintaining the economic stability of the nation and reducing the NPAs of the banks, the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was enacted in 2002. The Act aimed to set regulations of securitization and reconstruction of financial assets and enforcement of security interests. However, there are few challenges that are faced in the implementation of SARFAESI Act, 2002. Therefore, this paper aims to study the SARFAESI Act 2002 in detail and identify the key challenges faced in the implementation of the Act.