Home India Ministry of Finance In exercise of powers conferred by sub section 1 and clause ...
Date: 2018-10-18 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred by sub section 1 and clause b of sub section 2 of section 38,

Issued by Ministry of Finance · Department of Financial Services

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Executive Summary & Key Takeaways

Executive Summary: This notification, dated October 17, 2018, introduces the Security Interest Enforcement Amendment Rules, 2018, further amending the Security Interest Enforcement Rules, 2002. The amendments pertain to the sale of secured assets, both movable and immovable, under the Securitisation and Asset Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The rules come into force on the date of publication in the Official Gazette. Key Points / Main Content: Amendments to Security Interest Enforcement Rules, 2002: * These rules may be called the Security Interest Enforcement Amendment Rules, 2018. * They shall come into force on the date of their publication in the Official Gazette. Movable Secured Assets - Rule 6 Amendment: * If selling movable secured assets via public tender or auction, the secured creditor must publish a public notice in Form IIA in two leading newspapers, one in the vernacular language with wide local circulation. * The authorized officer must upload detailed terms and conditions of the sale on the secured creditor's website, including: * Borrower and secured creditor details. * Description of assets with identification marks/numbers. * Reserve price (if any) and payment terms. * Time and place of auction or completion deadline. * Earnest money deposit requirements. * Other essential information for potential purchasers. Immovable Secured Assets - Rule 8 Amendment: * If selling immovable secured assets via public tender or auction, the secured creditor must publish a public notice in Form IVA in two leading newspapers, one in the vernacular language with wide local circulation. * Every sale notice must be displayed on the property, and the authorized officer must upload detailed sale terms on the secured creditor's website, including: * Property description, including known encumbrances. * Secured debt amount. * Reserve price. * Auction time/place or sale completion deadline. * Earnest money deposit requirements. * Other essential information for potential purchasers. Appendix IIA and IVA Insertion: * Appendix IIA is inserted, providing a sale notice form for movable properties (E-Auction Sale Notice for Sale of Movable Assets). * Appendix IVA is inserted, providing a sale notice form for immovable properties (E-Auction Sale Notice for Sale of Immovable Assets). Impact Analysis: Secured Creditors: * Impact: Changes the requirements for public notices and online disclosures during the sale of secured assets. * Action Required: Update procedures to comply with the new publication and disclosure requirements, including using Forms IIA and IVA and providing detailed information on their websites. Borrowers and Guarantors: * Impact: Increased transparency in the sale process of secured assets. * Action Required: Stay informed about the terms and conditions of the sale of their assets by monitoring public notices and the secured creditor's website. Potential Purchasers: * Impact: More access to detailed information about secured assets for sale. * Action Required: Review the secured creditor's website for comprehensive details before participating in tenders or auctions. Authorized Officers: * Impact: Expanded responsibilities related to uploading information online and ensuring compliance with the amended rules. * Action Required: Familiarize themselves with the new requirements and implement procedures for compliant sales.

Key Entities Referenced

Securitisation and Asset Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: An Indian law that allows banks and other financial institutions to recover their dues by auctioning assets, when borrowers fail to repay their loans. Security Interest Enforcement Rules, 2002: Rules framed under the Securitisation and Asset Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 to provide the procedure for enforcement of security interest. Security Interest Enforcement Amendment Rules, 2018: Amendment to the Security Interest Enforcement Rules, 2002. Central Government: The executive authority of the Union of India. Ministry of Finance: A ministry in the Government of India responsible for the financial matters of the country. Department of Financial Services: A department under the Ministry of Finance, Government of India. New Delhi: The capital of India where the notification was issued. Mayapuri, New Delhi: Location of the Government of India Press, Ring Road.
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L.-33004/99 vlk/kj.k EXTRAORDINARY Hkkx II—[k.M 3—mi&[k.M (i) PART II—Section 3—Sub-section (i) izkf/dkj ls izdkf'kr PUBLISHED BY AUTHORITY la- 746] ubZ fnYyh] c`gLifrokj] vDrwcj 18] 2018@vkf'ou 26] 1940 No. 746] NEW DELHI, THURSDAY, OCTOBER 18, 2018/ASVINA 26, 1940 ििििवववव(cid:3)(cid:3)(cid:3)(cid:3) मममम(cid:7)(cid:7)ंं(cid:7)(cid:7)ंं ााााललललयययय ((((ििििवववव(cid:3)(cid:3)(cid:3)(cid:3)ीीीीयययय ससससववववेेेे ााााएएएए ंं ंंििििववववभभभभाााागगगग)))) अअअअििििधधधधससससचचूूचचूू ननननाााा नई (cid:4)द(cid:6)ली, 17 अ(cid:10) तूबर, 2018 ससससाााा....ककककाााा....ििििनननन.... 1111000044440000((((अअअअ)))).—क(cid:14)(cid:15)ीय सरकार, िव(cid:22)त ीय आि(cid:24)तय(cid:25) का (cid:26)ितभिू तकरण और पुनग!ठन तथा (cid:26)ितभिू त िहत का (cid:26)वत!न अिधिनयम, 2002 (2002 का 54) क* धारा 13 क* उप-धारा (4), उप-धारा (10) और उप-धारा (12) के साथ प/ठत धारा 38 क* उप-धारा (1) और उप-धारा (2) के खंड (ख) 4ारा (cid:26)द(cid:22) त शि6य(cid:25) का (cid:26)योग करत े 8ए, (cid:26)ितभूित िहत ((cid:26)वतन! ) िनयम, 2002 का और संशोधन करन ेके िलए िन: निलिखत िनयम बनाती ह,ै अथा!त् :- 1. ससससििंंििंं(cid:12)(cid:12)(cid:12)(cid:12)(cid:13)(cid:13)(cid:13)(cid:13) ननननाााामममम औऔऔऔरररर (cid:17)(cid:17)(cid:17)(cid:17)ााााररररंंंंभभभभ – (1) इन िनयम(cid:25) का सिं ;< नाम (cid:26)ितभिू त िहत ((cid:26)वत!न) संशोधन िनयम, 2018 ह।ै (2) य ेराजप? म(cid:14) (cid:26)काशन क* तारीख को (cid:26)वृA ह(cid:25)गे। 2. (cid:26)ितभिू त िहत ((cid:26)वत!न) िनयम, 2002 (िजस ेइसम(cid:14) इसके पDात उ6 िनयम कहा गया ह)ै के िनयम 6 म (cid:14)– (i) उप-िनयम (2) म(cid:14) (cid:26)थम परGतकु के (cid:24)थान पर िनHिलिखत परGतुक को रखा जाएगा, अथात! :- “परGत ु यह (cid:4)क ऐसी (cid:26)ितभतू आि(cid:24)तय(cid:25) क* िबL* लोग(cid:25) से िनिवदा आमिं ?त करके या सावज! िनक नीलामी करके क* जा रही हो तो (cid:26)ितभूत लेनदार प/रिशM-IIक म (cid:14) (cid:4)दए गए (cid:26)ाNप म(cid:14) साव!जिनक सूचना दगे ा िजसे दो (cid:26)मुख समाचार प?(cid:25) म (cid:14) (cid:26)कािशत (cid:4)कया जाएगा, इनम (cid:14) स े एक (cid:24)थानीय भाषा का समाचार प? हो िजसका उ6 ;े? म (cid:14) Qापक प/रचालन हो।” (ii) उप-िनयम (3) के पDात िनHिलिखत उप-िनयम अंत:(cid:24)थािपत (cid:4)कए जाएगं :े- “(4) (cid:26)ािधकृत अिधकारी (cid:26)ितभूत चल आि(cid:24)तय(cid:25) क* िबL* के िनबंधन एव ं शतR के Sयौरे को (cid:26)ितभतू लने दार क* वेबसाइट पर अपलोड करेगा िजसम(cid:14) िनHिलिखत को शािमल (cid:4)कया जाएगा, (क) उधार लेने वाले और (cid:26)ितभूत लने दार का Sयौरा; (ख) बेची जान ेवाली (cid:26)ितभूत चल आि(cid:24)तय(cid:25) का पूण !िववरण, उस पर पहचान िचVन या सWं या, य(cid:4)द कोई हो, के साथ; (ग) (cid:26)ितभूत चल आि(cid:24)तय(cid:25) का आरि;त मू(cid:6)य, य(cid:4)द कोई हो और भुगतान का समय तथा पXित; 6123 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (घ) साव!जिनक नीलामी का समय और (cid:24)थान या समय िजसके पDात (cid:4)कसी अGय पXित स ेिवLय पूरा (cid:4)कया जाएगा; (ड.) जमा क* जान ेवाली अिYम धनरािश, जो (cid:26)ितभूत लेनदार 4ारा िनयत क* जाए; (च) कोई अGय िनबंधन और शत Z िजसे (cid:26)ािधकृत अिधकारी Lेता के िलए (cid:26)ितभतू चल आि(cid:24)तय(cid:25) क* (cid:26)कृित और मू(cid:6)य को जानन ेके िलए अपिे ;त समझता हो।” 3. उ6 िनयम(cid:25) के िनयम 8 म(cid:14) – (i) उप-िनयम (6) म,(cid:14) परGतुक के (cid:24)थान पर िनHिलिखत परGतकु को रखा जाएगा:- “परGत ु यह (cid:4)क ऐसी (cid:26)ितभतू आि(cid:24)तय(cid:25) क* िबL* या तो लोग(cid:25) स े िनिवदा आमंि?त करन े के 4ारा या साव!जिनक नीलामी 4ारा क* जा रही हो तो (cid:26)ितभतू लेनदार प/रिशM-IVक म(cid:14) (cid:4)दए गए (cid:26)ाNप म(cid:14) सावज! िनक सूचना दगे ा िजस े दो (cid:26)मुख समाचार प?(cid:25) म (cid:14) (cid:26)कािशत (cid:4)कया जाएगा, इनम(cid:14) से एक (cid:24)थानीय भाषा का समाचार प? हो िजसका उ6 ;े? म(cid:14) Qापक प/रचालन हो।” (ii) उप-िनयम (7) के (cid:24)थान पर िनHिलिखत उप-िनयम को रखा जाएगा, अथा!त:- “(7) िवLय के (cid:26)(cid:22)येक नो/टस को अचल सपं िA के सहज द^ृ य भाग पर िचपकाया जाएगा और (cid:26)ािधकृत अिधकारी िवLय के िनबंधन और शतR के Sयौरे को (cid:26)ितभूत लने दार क* वेबसाइट पर अपलोड करेगा िजसम (cid:14) िनHिलिखत को शािमल (cid:4)कया जाएगा, (क) बेची जान ेवाली अचल संपिA का Sयौरा िजनम (cid:14)ऐस ेऋण भार(cid:25) का भी Sयौरा हो िजनक* जानकारी (cid:26)ितभूत लने दार को हो; (ख) वसूली हते ु (cid:26)ितभूत ऋण िजसके िलए संपिA को बेचा जाना ह;ै (ग) (cid:26)ितभूत अचल आि(cid:24)तय(cid:25) का आरि;त मू(cid:6)य, िजसस ेकम क*मत पर सपं िA क* िबL* नह‘ होगी; (घ) साव!जिनक नीलामी का समय और (cid:24)थान या समय िजसके पDात (cid:4)कसी अGय पXित स ेिवLय पूरा (cid:4)कया जाएगा; (ड.) जमा क* जान ेवाली अिYम धनरािश, जो (cid:26)ितभूत लेनदार 4ारा िनयत क* जाए; (च) कोई अGय िनबंधन और शतZ िजसे (cid:26)ािधकृत अिधकारी Lेता के िलए सपं िA क* (cid:26)कृित और मू(cid:6)य को जानने के िलए अपेि;त समझता हो।” 4. मूल िनयम म(cid:14) प/रिशM-II के पDात िनHिलिखत प/रिशM को अंत:(cid:24)थािपत (cid:4)कया जाएगा, अथात! :- पपपप(cid:20)(cid:20)(cid:20)(cid:20)ररररििििशशशश(cid:22)(cid:22)(cid:22)(cid:22)----IIकककक [िनयम 6(2) का परGतकु दखे (cid:14)] चचचचलललल ससससपपंंपपंं िििि(cid:3)(cid:3)(cid:3)(cid:3) ककककेेेे ििििवववव(cid:26)(cid:26)(cid:26)(cid:26)यययय हहहहततेेततेे ुु ुुििििवववव(cid:26)(cid:26)(cid:26)(cid:26)यययय ननननोोोो(cid:20)(cid:20)(cid:20)(cid:20)टटटटसससस (cid:26)ितभिू त िहत ((cid:26)वत!न) िनयम, 2002 के िनयम 6(2) के परGतुक के साथ प/ठत िव(cid:22)त ीय आि(cid:24)तय(cid:25) का (cid:26)ितभूितकरण और पुनग!ठन तथा (cid:26)ितभूित िहत का (cid:26)वत!न अिधिनयम, 2002 के अधीन चल आि(cid:24)तय(cid:25) के िवLय हेतु ई-नीलामी िवLय नो/टस आम लोग(cid:25) को और िवशेष Nप से उधार लने े वाला और (cid:26)(cid:22)याभूित-दाता को यह नो/टस (cid:4)दया जाता ह ै (cid:4)क नीच े वaण!त चल संपिA जो (cid:26)ितभूत लेनदार के पास दिृMबंधक/िगरवी/(cid:26)भा/रत ह,ै का (cid:26)लि;त/वा(cid:24)तिवक कSजा (इनम(cid:14) स े जो भी लाग ूहोता हो) (cid:26)ितभतू लेनदार के (cid:26)ािधकृत अिधकारी 4ारा िलया गया ह,ै को “जहां ह,ै जैसा ह ैऔर जो कुछ भी ह”ै के आधार पर........................................ (उधार लने े वाल(cid:25) के नाम का उ(cid:6)लेख (cid:4)कया जाए) और ................................................... ((cid:26)(cid:22)याभूित-दाता के नाम का उ(cid:6)लेख (cid:4)कया जाए) स े ........................................ (cid:26)ितभूत लेनदार क* ....................................... dपए क* बकाया रािश क* वसलू ी हते ु (cid:4)दनाकं .................... (िवLय क* तारीख का उ(cid:6)लेख (cid:4)कया जाए) को बेचा जाएगा। आरि;त मू(cid:6)य ................. dपए होगा और अिYम धनरािश ....................... dपए होगी। (eात ऋण भार, य(cid:4)द कोई हो, सिहत चल संपिA का सिं ;< Sयौरा द)(cid:14) िवLय के िनबंधन और शतR के Sयौरे के िलए कृपया नीच े (cid:4)दए गए ............ (cid:26)ितभूत लेनदार क* वेबसाइट अथा!त www. (वेबसाइट का Sयौरा द)(cid:14) दखे (cid:14)। तारीख: (cid:24)थान: (cid:26)ािधकृत अिधकारी¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 3 5. मूल िनयम म(cid:14), प/रिशM-IV के पDात िनHिलिखत प/रिशM को अंत:(cid:24)थािपत (cid:4)कया जाएगा, अथा!त:- पपपप(cid:20)(cid:20)(cid:20)(cid:20)ररररििििशशशश(cid:22)(cid:22)(cid:22)(cid:22)----IIIIVVVVकककक [िनयम 8(6) का परGतकु दखे (cid:14)] अअअअचचचचलललल ससससपपंंपपंं िििि(cid:3)(cid:3)(cid:3)(cid:3) ककककेेेे ििििवववव(cid:26)(cid:26)(cid:26)(cid:26)यययय हहहहततेेततेे ुुुुििििवववव(cid:26)(cid:26)(cid:26)(cid:26)यययय ननननोोोो(cid:20)(cid:20)(cid:20)(cid:20)टटटटसससस (cid:26)ितभिू त िहत ((cid:26)वत!न) िनयम, 2002 के िनयम 8(6) के परGतुक के साथ प/ठत िव(cid:22)त ीय आि(cid:24)तय(cid:25) का (cid:26)ितभूितकरण और पनु ग!ठन तथा (cid:26)ितभिू त िहत का (cid:26)वत!न अिधिनयम, 2002 के अधीन अचल आि(cid:24)तय(cid:25) के िवLय हते ु ई-नीलामी िवLय नो/टस आम लोग(cid:25) को तथा िवशेष Nप से उधार लने े वाले और (cid:26)(cid:22)याभिू त-दाता को यह नो/टस (cid:4)दया जाता ह ै(cid:4)क नीचे वaण!त अचल संपिA जो (cid:26)ितभूत लेनदार के पास िगरवी/(cid:26)भा/रत ह,ै का (cid:26)लि;त/वा(cid:24)तिवक कSजा (इनम(cid:14) से जो भी लागू होता हो) (cid:26)ितभूत लेनदार के (cid:26)ािधकृत अिधकारी 4ारा िलया गया ह,ै को “जहां ह,ै जैसा ह ै और जो कुछ भी ह”ै के आधार पर........................................ (उधार लने े वाल(cid:25) के नाम का उ(cid:6)लेख (cid:4)कया जाए) और ................................................... ((cid:26)(cid:22)याभूित-दाता के नाम का उ(cid:6)लेख (cid:4)कया जाए) स े ........................................ (cid:26)ितभूत लेनदार क* ....................................... dपए क* बकाया रािश क* वसलू ी हते ु (cid:4)दनाकं .................... (िवLय क* तारीख का उ(cid:6)लेख (cid:4)कया जाए) को बेचा जाएगा। आरि;त मू(cid:6)य ................. dपए होगा और अिYम धनरािश ....................... dपए होगी। (eात ऋण भार, य(cid:4)द कोई हो, सिहत अचल संपिA का संि;< Sयौरा द)(cid:14) िवLय के िनबंधन और शतR के Sयौरे के िलए कृपया नीच े (cid:4)दए गए ............ (cid:26)ितभूत लेनदार क* वेबसाइट अथा!त www. (वेबसाइट का Sयौरा द)(cid:14) दखे (cid:14)। तारीख: (cid:24)थान: (cid:26)ािधकृत अिधकारी [फा. सं. 31/20/2018-डीआरटी] वं(cid:4)दता कौल, संयु6 सिचव MINISTRY OF FINANCE (Department of Financial Services) NOTIFICATION New Delhi, the 17th October, 2018 G.S.R. 1040(E).—In exercise of powers conferred by sub-section (1) and clause (b) of sub-section (2) of section 38, read with sub-section (4) (10) and (12) of section 13 of the Securitisation and Asset Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), the Central Government hereby makes the following rules further to amend the Security Interest (Enforcement) Rules, 2002, namely:- 1. Short title and commencement.–(1) These rules may be called the Security Interest (Enforcement) Amendment Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Security Interest (Enforcement) Rules, 2002, (hereinafter referred to as the said rules), in rule 6 - (i) in sub-rule (2), for the first proviso, the following proviso shall be substituted, namely:- “Provided that if the sale of such secured assets is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix II-A to be published in two leading news papers, including one in vernacular language having wide circulation in the locality.”;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (ii) after sub-rule (3), the following sub-rule shall be inserted, namely:– “(4) The authorisedofficer shall upload the detailed terms and conditions of the sale of the movable secured assets on the web-site of the secured creditor, which shall include, (a) details about the borrower and the secured creditor; (b) complete description of movable secured assets to be sold with identification marks or numbers, if any, on them; (c) reserve price of the movable secured assets , if any, and the time and manner of payment; (d) time and place of public auction or the time after which sale by any other mode shall be completed; (e) deposit of earnest money as may be stipulated by the secured creditor; (f) any other terms or conditions which the authorsed officer considers it necessary for a purchaser to know the nature and value of movable secured assets.” 3. In the said rules, in rule 8 - (i) in sub-rule (6), for the proviso, the following proviso shall be substituted, namely:- “ Provided that if the sale of such secured asset is being effected by either inviting tenders from the public or by holding public auction, the secured creditor shall cause a public notice in the Form given in Appendix IV-A to be published in two leading newspapers including one in vernacular language having wide circulation in the locality.”; (ii) forsub-rule (7), the following sub rule shall be substituted, namely:– “(7) every notice of sale shall be affixed on the conspicuous part of the immovable property and the authorisedofficer shall upload the detailed terms and conditions of the sale, on the web- site of the secured creditor, which shall include; (a) the description of the immovable property to be sold, including the details of the encumbrances known to the secured creditor; (b) the secured debt for recovery of which the property is to be sold; (c) reserve price of the immovable secured assets below which the property may not be sold; (d) time and place of public auction or the time after which sale by any other mode shall be completed; (e) deposit of earnest money as may be stipulated by the secured creditor; (f) any other terms and conditions, which the authorized officer considers it necessary for a purchaser to know the nature and value of the property.”; 4. In the principal rules, after Appendix II, the following Appendix shall be inserted, namely:– “APPENDIX- II-A [See proviso to rule 6 (2)] Sale notice for sale of movable properties E-Auction Sale Notice for Sale of Movable Assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002read with proviso to Rule 6(2) of the Security Interest (Enforcement) Rules, 2002 Notice is hereby given to the public in general and in particular to the Borrower (s) and Guarantor (s) that the below described movable property hypothecated/pledged/charged to the Secured Creditor, the constructive/physical ---------------(whichever is applicable) possession of which has been taken by the Authorised Officer of ----------------------- Secured Officer, will be sold on “As is where is”, “As is what is”, and “ Whatever there is” on ------------------------(mention date of the sale), for recovery of Rs.------------------ --------due to the ---------------------- Secured Creditor from ---------------------------------------------------- (mention name of the Borrower (s)) and ---------------------------------------------(mention name of the Guarantor¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 5 (s)). The reserve price will be Rs-------------------------------and the earnest money deposit will be Rs------------- -----------------. (Give short description of the movable property with known encumbrances, if any) For detailed terms and conditions of the sale, please refer to the link provided in ----------------------Secured Creditor’s website i.e. www. (give details of website) . Date: Authorised Officer Place: ” 5. In the principal rules, after Appendix IV, the following Appendix shall be inserted, namely:– “APPENDIX- IV-A [See proviso to rule 8 (6)] Sale notice for sale of immovable properties E-Auction Sale Notice for Sale of Immovable Assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with proviso to Rule 8 (6) of the Security Interest (Enforcement) Rules, 2002 Notice is hereby given to the public in general and in particular to the Borrower (s) and Guarantor (s) that the below described immovable property mortgaged/charged to the Secured Creditor, the constructive/physical --- ------------(whichever is applicable) possession of which has been taken by the Authorised Officer of ----------- ------------ Secured Creditor, will be sold on “As is where is”, “As is what is”, and “Whatever there is” on ---- --------------------(mention date of the sale), for recovery of Rs.--------------------------due to the ------------------- ---Secured Creditor from ----------------------------------------------------(mention name of the Borrower (s)) and - --------------------------------------------(mention name of the Guarantor (s)). The reserve price will be Rs---------- ---------------------and the earnest money deposit will be Rs------------------------------. (Give short description of the immovable property with known encumbrances, if any) For detailed terms and conditions of the sale, please refer to the link provided in ---------------------- Secured Creditor’s website i.e. www. (give details of website) Date: Authorised Officer Place: [F. No. 31/20/2018-DRT] VANDITA KAUL, Jt. Secy Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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