Weather SARFESI act will be applicable will be applicable on a vacant land , where it is mentioned in the sale deed as residential property and being used for agricultural purpose. and same time if there is no government guideline rate for agricultural land , in the mauza where land is situated ( as per Sub registration office it is urban area).
Asked 3 years ago in Property Law from Patna, Bihar
if it is agricultural land then said land cannot be sold by bank or financial institutions . per Section 31(i) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the provisions of the SARFAESI Act do not apply to any security interest created in agricultural land. the issue as to whether land is agricultural or not would have to be decided by Tribunal
The Supreme Court in the decision in SARIF ABIBI MOHMED IBRAHIM'S CASE, held .Whether a land is an agricultural land or not is essentially a question of fact. Several tests have been evolved in the decisions of this Court and the High Courts, but all of them are more in the nature of guidelines. The question has to be answered in each case having regard to the facts and circumstances of that case. There may be factors both for and against a particular point of view. The Court has to answer the question on a consideration of all of them a process of evaluation. The inference has to be drawn on a cumulative consideration of all the relevant facts.
sir , what is your opinion in such matter
Asked 3 years ago
If the land is agricultural in nature then the same cannot be sold by a bank or any other financial institution subject to any specific clause to the contrary in the agreement.
in your case in sale deed it is mentioned that vacant land is residential property used for agricultural purposes . it is located in urban area. once you say land is residential it is doubtful that you can say that SARFESI would not be applicable in your case
sarfeasi act is applicable on immovable property whatever the nature of land may be whether agricultural or residential.
so in ur case sarfaesi act is applicable