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SARFAESI Act:

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act was passed by the Indian Parliament in 2002. The Act empowers banks and financial institutions to recover outstanding dues from borrowers by selling their assets without the intervention of a court. The SARFAESI Act is applicable to secured loans above Rs. 1 lakh.

Sale Certificate under SARFAESI Act:

The sale of assets under SARFAESI Act is conducted by the banks or financial institutions that have taken possession of the assets. Once the sale of assets is completed, the bank or financial institution issues a Sale Certificate to the buyer of the assets. The Sale Certificate is an important document that proves the transfer of ownership of the assets from the borrower to the buyer.

Format of Sale Certificate under SARFAESI Act:

The Sale Certificate under SARFAESI Act should contain the following details:

1. Name and address of the borrower
2. Name and address of the buyer
3. Details of the asset sold, including its description, location, and boundaries
4. Sale price of the asset
5. Date of sale
6. Details of any encumbrances on the asset
7. Signatures of the authorized signatories of the bank or financial institution

Procedure for Obtaining Sale Certificate under SARFAESI Act:

The procedure for obtaining a Sale Certificate under SARFAESI Act is as follows:

1. The buyer of the asset should make an application to the bank or financial institution that has sold the asset.
2. The application should be made in writing and should include the details of the sale, including the date and price of the sale.
3. The bank or financial institution will verify the details of the sale and issue the Sale Certificate to the buyer.
4. The Sale Certificate will be issued in the prescribed format.

Importance of Sale Certificate under SARFAESI Act:

The Sale Certificate is an important document that proves the transfer of ownership of the assets from the borrower to the buyer. It is important for the buyer to obtain the Sale Certificate to establish their ownership over the assets. The Sale Certificate is also required for the buyer to register the asset in their name with the relevant authorities.

SALE CERTIFICATE

This is to certify that in pursuance of the powers conferred upon me under Section [Insert Section number] of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act"), I, [Insert name and designation of Authorised Officer], the Authorised Officer of [Insert name of Bank/Financial Institution], having its registered office at [Insert Address], have sold the property described below to [Insert name of purchaser], for a sum of [Insert sale price], on [Insert date of sale], which is considered to be fair and reasonable, after due advertisement in newspapers [Insert name of newspaper] and [Insert name of newspaper], on [Insert dates of advertisement], and after following the due process as per the SARFAESI Act.

Description of Property: [Insert description of the property, including details such as address, land area, built-up area, boundaries, etc.]

The said property was mortgaged/charged by [Insert name of borrower] and [Insert name of guarantor(s)], with [Insert name of Bank/Financial Institution], as per the mortgage/charge deed dated [Insert date of mortgage/charge deed], and registered at [Insert name of registration office and registration number], in favour of the Bank/Financial Institution.

After the borrower [Insert name of borrower] failed to repay the loan amount and defaulted on the payments, the Bank/Financial Institution issued a notice under Section [Insert section number] of the SARFAESI Act, demanding payment of the outstanding amount within [Insert number of days] days, which was not complied with. The Bank/Financial Institution, therefore, took possession of the said property on [Insert date of taking possession] and issued a possession notice to the borrower.

After taking possession of the said property, the Bank/Financial Institution issued a sale notice, inviting bids from the interested parties, which was published in [Insert name of newspaper] and [Insert name of newspaper], on [Insert dates of advertisement]. [Insert name of purchaser], being the highest bidder, was declared as the successful bidder, and the sale was conducted on [Insert date of sale].

I hereby certify that the sale was conducted in a fair and transparent manner, after due advertisement, and that the sale price received was fair and reasonable, and that the sale has been confirmed by the Debts Recovery Tribunal.

This certificate is issued under my hand on this [Insert date of issue].

Authorised Officer, [Insert name of Bank/Financial Institution].

Conclusion:

The Sale Certificate under SARFAESI Act is an important document that establishes the ownership of assets sold under the Act. The Sale Certificate should be obtained by the buyer of the asset to prove their ownership and to register the asset in their name. The format of the Sale Certificate is prescribed by the Act, and the procedure for obtaining the Sale Certificate is straightforward.