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Central Registry
A record shall be maintained at the central register at the head office of the central register in which transactions relating to
1. Securitisation of Financial Assets
2. Reconstruction of Financial Assets
3. Creation of security interests shall be maintained.
Under the SARFAESI act filing of details of transactions of securitisation, reconstruction and creation of security interest is required to be filed with the Central Register is 30 days after the date after the date of transaction or creation of security.
Modification also have to be filled within 30 days
Satisfaction of Charge 30 days
If any securitisation or reconstruction company fails to comply with any of the directions issued by the Reserve Bank of India, then such company is punishable with a fine not exceeding Rs. 5 lakh for the default. In case of further continuation of the offence, an additional fine up to Rs. 10,000 per day of the default can be imposed.
Non-applicability of SARFAESI Act
(i) A lien, on any goods, money or security given by or under the Indian Contract Act, 1872 or the Sale of Goods Act, 1930 or any other law for the time being in force.
(ii) A pledge of movable, within the meaning of Section 172 of the Indian Contract Act, 1872. (iii) Creation of security interest in any vessel as defined within the meaning of Section 3(55) of the Merchant Shipping Act, 1958.
(iv) Creation of security in any aircraft as defined in Section 2 of Aircraft Act 1934.
(v) Any conditional sale, hire-purchase or lease or any other contract in which no security Interest has been created.
(vi) Any rights of unpaid seller under Section 47 of the Sale of Goods Act, 1930.
(vii) Any properties not liable for attachment or sale under the first proviso to Section 60(1) of the Civil Procedure Code, 1908.
(viii) Any security interest for securing repayment of any financial asset not exceeding one lakh rupees
(ix) Any security interest created in agricultural land
(x) Any case, in which the amount due is less than twenty per cent of the principal amount and
interest thereunder.
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