Appointment of Appellate Authority under Section 4(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002.

## Policy Analysis Report: Amendment to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Financial Services, Government of India, regarding an amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. The notification, dated September 16, 2022, designates a Joint Secretary (or equivalent officer) within the Department of Financial Services to hear and dispose of appeals from Asset Reconstruction Companies (ARCs) under Section 4(2) of the SARFAESI Act. This amendment supersedes an earlier notification (S.O. 931(E) dated 2.3.2020) that likely designated a different individual or office for this function. The key finding is a change in the designated authority for handling appeals from ARCs, which likely aims to streamline the appeals process. **2. Introduction:** This report provides an analysis of a government notification pertaining to the SARFAESI Act, 2002, based solely on the provided text. The purpose is to inform stakeholders, particularly Asset Reconstruction Companies, about the changes introduced by this notification regarding the handling of appeals under the Act. **3. Policy Overview:** * **Amendment:** This notification represents an amendment to the SARFAESI Act, 2002. It supersedes notification S.O. 931(E) dated 2.3.2020. * **Core Objective(s):** Based on the provided text, the core objective of this amendment is to designate a specific authority (Joint Secretary or equivalent) within the Department of Financial Services, Ministry of Finance, to hear and dispose of appeals made by Asset Reconstruction Companies (ARCs) under Section 4(2) of the SARFAESI Act, 2002. The underlying objective is to ensure efficient and effective resolution of appeals related to asset reconstruction. **4. Background and Rationale:** Since this is an amendment, the following applies: The likely reason for this specific amendment is a change in the responsible personnel, a restructuring of responsibilities within the Department of Financial Services, or a need to clarify or update the designated authority for handling ARC appeals. The supersession of the 2020 notification suggests a need for an updated designation. **5. Key Provisions / Changes:** The notification introduces the following specific changes: * **Specific Part of Original Policy Changed:** This amendment pertains to the designation of the authority responsible for hearing and disposing of appeals under Section 4(2) of the SARFAESI Act, 2002, specifically regarding appeals made by ARCs. The previous designation, outlined in notification S.O. 931(E) dated 2.3.2020, is explicitly superseded. * **New Rule/Provision:** The new provision designates the "Joint Secretary or equivalent officer in the Department of Financial Services, Ministry of Finance, Government of India, handling the work related to aforesaid Act" as the authority to hear and dispose of appeals made by ARCs under Section 4(2) of the SARFAESI Act. * **Difference/Effect of Change:** The effect of this change is to transfer or re-affirm the responsibility of handling ARC appeals to the specified role within the Department of Financial Services. The change ensures that appeals are handled by an individual with relevant expertise and authority within the Ministry of Finance. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders affected by this amendment are: * Asset Reconstruction Companies (ARCs) who may need to file appeals under Section 4(2) of the SARFAESI Act. * The Department of Financial Services within the Ministry of Finance, specifically the Joint Secretary or equivalent officer designated by this notification. * The Central Government, which is responsible for enacting and implementing such policies. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Department of Financial Services within the Ministry of Finance is the responsible body. The designated Joint Secretary (or equivalent officer) is directly responsible for hearing and disposing of the appeals. * **Timelines or Procedures:** The notification does not specify any explicit timelines or procedures. * **Implementation of the Change:** ARCs will need to direct their appeals to the newly designated authority: the Joint Secretary or equivalent officer handling SARFAESI Act-related work in the Department of Financial Services. Internal communication within the Department of Financial Services will be necessary to ensure the designated officer is aware of their responsibilities. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is a more efficient and potentially more informed process for handling appeals from ARCs under the SARFAESI Act. By assigning the responsibility to a specific senior-level officer within the Department of Financial Services, the government likely aims to ensure consistent and expert handling of these appeals. **9. Conclusion:** The notification analyzed represents an amendment to the SARFAESI Act, 2002, specifically designating a Joint Secretary (or equivalent officer) in the Department of Financial Services to handle appeals from Asset Reconstruction Companies. This change likely reflects an effort to streamline the appeals process and ensure that appeals are addressed by an individual with the appropriate expertise and authority. The change has implications for ARCs who must now direct their appeals to this designated authority.

Key Entities Referenced