Legal Article

Appointment of authorized officer under the SARFAESI Act

Shivendra Pratap Singh


High Court Lucknow

Article | SARFAESI

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Published on: 3 Feb, 2023

An authorized officer under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act of 2002 in India is a person appointed by a bank to take physical possession of a property that is secured by a security interest. The appointment of an authorized officer is made after the Debts Recovery Tribunal (DRT) has granted an order for possession of the property.

The authorized officer is responsible for taking physical possession of the property, securing it, and selling it to recover the debt owed by the borrower. The authorized officer must act in accordance with the provisions of the SARFAESI Act and follow the procedures prescribed by the DRT.

It’s important to note that the SARFAESI Act provides a framework for the enforcement of security interests by lenders and the rights and obligations of borrowers. The appointment of an authorized officer is subject to legal and procedural requirements, and borrowers should seek legal advice if they have any questions or concerns.