The demand notice under section 13(2) of the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act of 2002 in India must contain certain information as specified in the Act. Here are the key contents of a demand notice under section 13(2) of the SARFAESI Act:
- Name and address of the borrower: The demand notice must specify the name and address of the borrower who is in default of the loan.
- Amount of debt: The demand notice must specify the amount of debt that is owed by the borrower.
- Date of default: The demand notice must specify the date of default, that is, the date on which the borrower failed to repay the loan as agreed.
- Nature of debt: The demand notice must specify the nature of the debt, that is, the type of loan and the terms and conditions of the loan agreement.
- Details of security: The demand notice must specify the details of the security interest that the lender holds in the property, such as the type of mortgage or other security interest and the property that is pledged as security.
- Steps to be taken: The demand notice must specify the steps that the lender intends to take if the debt is not paid, such as taking possession of the property, selling the property, or appointing a recovery agent.
- Time frame for payment: The demand notice must specify the time frame for payment of the debt, that is, the deadline by which the debt must be paid or the notice disputed.
- Rights and obligations of the borrower: The demand notice must inform the borrower of their rights and obligations under the SARFAESI Act, including the right to dispute the demand notice and the right to file a representation with the lender.
It’s important to note that the demand notice must be in writing and must be served on the borrower in accordance with the provisions of the SARFAESI Act. The demand notice is the first step in the enforcement process under the SARFAESI Act and triggers the right of the borrower to dispute the notice or to pay the debt.