What is SARFAESI  ACT 2002 ?

The SARFAESI Act, 2002 is the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It is an Indian law that empowers banks and financial institutions to recover their non-performing assets (NPAs) without the intervention of courts. The act allows them to take possession of collateral and sell it to recover the outstanding loans, providing a faster and more efficient mechanism for recovery.