Advances in Consumer Research
Issue 2 : 965-972
Original Article
SARFAESI Act in Practice: Legal Efficacy, Judicial Trends, and Borrower Safeguards
1
Professor of Practice, School of Law, UPES, Dehradun.
Abstract

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, was enacted to empower banks and financial institutions to recover non-performing assets (NPAs) efficiently without the intervention of courts. While the Act significantly strengthened creditor rights, it also raised concerns regarding the protection of borrower interests and the balance of power between lenders and debtors. This paper explores the practical efficacy of the SARFAESI Act in achieving its legislative intent, examines the evolving judicial interpretations and trends in its application, and analyzes the safeguards available to borrowers against arbitrary or excessive creditor actions. Through a comprehensive review of case law, enforcement data, and comparative legal insights, the study evaluates whether the Act continues to serve its dual objectives of financial discipline and fairness in debt recovery.

Keywords
Recommended Articles
Research Article
Optimization of Material Logistics in Civil Engineering Supply Chains: A Case Study Approach
...
Published: 11/09/2025
Original Article
Consumer Decision-Making Framework for Circular Economy Oriented Products
...
Original Article
Measuring the Service Quality of Indian Cryptocurrency Apps Using Text Mining & SERVQUAL Metrics
Original Article
The Role of Emotional Intelligence in Effective Management
...
Loading Image...
Volume 2, Issue 2
Citations
109 Views
163 Downloads
Share this article
© Copyright Advances in Consumer Research