Enforcement of Security Interest (SARFAESI) Act, 2002 – The Act empowers Banks / Financial Institutions to recover their non-performing assets without the intervention of the Court, through acquiring and disposing of the secured assets in NPA accounts with outstanding amount of Rs. 1 lakh and above. The banks have to first issue a notice. Then, on the borrower’s failure to repay, they can:
1.Take possession of security and/or.
2.Take over the management of the borrowing concern.
3.Appoint a person to manage the concern.
I DIN NOT GET THESE 3 POINTS 1,2,3 .