Knowledge of the rules and regulations is important in ensuring order, fairness, and a safe environment. The guidelines provide the standards and expectations that need to be adhered to in order to ensure compliance and efficient operations. Here is a summary of the rules and regulations:
Transfer of Property Act, 1882:
This is the core legislation governing property transactions in India, including foreclosure. Section 67 of the Act specifically gives the mortgagee (lender) the right to take over a mortgaged property by way of foreclosure on default by the borrower in paying, with provisions for the statutory mode of takeover and sale of the property for realisation of amounts
Limitation Act, 1963:
The Limitation Act stipulates the period within which a suit may be instituted for foreclosure. According to the act, a suit for foreclosure must be filed within 12 years from the date when the money secured through the mortgage falls due, providing lenders with a specific time within which they must take action against defaults
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act):
The SARFAESI Act provides lenders with a faster and more efficient means to recover dues from defaulting borrowers. It allows them to seize the mortgaged property, auction it, and enforce security interests without going to courts, expediting the process of foreclosure and protecting the interest of financial institutions.
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