Replying to a SARFAESI Act notice (Section 13(2)) requires filing a formal, written objection within 60 days of receiving it. You must highlight factual errors, incorrect amount calculations, or violations of RBI guidelines regarding NPA classification. Send the reply via registered post with acknowledgment due to ensure proof of service, as this is crucial for further legal action. [1, 2, 3, 4] 


Key Steps to Reply to a SARFAESI Notice:

• Verify Notice Details: Carefully check if the loan amount, interest rates, and penalty charges mentioned are accurate.
• Check NPA Classification: Verify if the account was declared a Non-Performing Asset (NPA) in accordance with RBI guidelines, usually 90 days of non-payment.
• Draft the Reply (Objections): Within 60 days, draft a formal reply stating objections, such as incorrect calculations, improper security details, or misclassification of the account.
• Request Information: You can ask the bank for a detailed statement of account, rate of interest applied, and specific details of the secured assets.
• Submit to Authorized Officer: Address the reply to the “Authorized Officer” mentioned in the notice via registered post.
• Bank’s Mandatory Response: The bank is legally required to respond to your objection within 15 days of receiving it, stating whether they accepted or rejected it.
• File with DRT: If the bank ignores your reply or rejects it without valid reasons, you can approach the Debt Recovery Tribunal (DRT). [1, 2, 4, 5, 6, 7] 

What to Include in the Reply:

• Clear details of the loan account.
• Objections to the outstanding amount.
• Mention of any payments made that weren’t credited.
• A request for a reasonable repayment plan or for a stay on the action due to valid reasons. [2, 8] 

Disclaimer: It is highly recommended to seek professional legal advice from a lawyer specializing in banking laws when dealing with SARFAESI notices. [3] 

AI can make mistakes, so double-check responses

[1] https://www.legalparihar.in/blog/how-to-respond-to-sarfaesi-notice-section-13-2
[2] https://www.linkedin.com/pulse/what-do-when-you-receive-sarfaesi-notice-klxec
[3] https://www.legalpay.in/post/what-are-your-rights-under-the-sarfaesi-act-2002
[4] https://legalwarningindia.in/sarfaesi-notice-legal-reply-borrower-rights-india/
[5] https://www.banksamadhan.in/sarfaesi-act
[6] https://www.cglegal.in/blog-13-2-demand-notice-13-4-possession-notice-sarfaesi-drt
[7] https://supremecourtonline.in/safaesi-s-133a-reply-to-notice-by-an-advocate-on-behalf-of-the-authorised-officer-is-valid/
[8] https://finlender.com/judicial-remedies-available-to-borrowers-under-the-sarfaesi-act/

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