• Sale under Sarfaesi Act

Can a bank sale agriculture land parcel which is a part of diverted land under sarfesai act.This agriculture land is not used for agriculture purpose and the same is confirmed in writing by patwari
Asked 6 months ago in Property Law from Seoni, Madhya Pradesh
Religion: Hindu

Since land is not used for agricultural purposes bank can sell the said land 


2) land cannot be regarded as an agricultural land merely because it stood as such in the revenue entries,


3) SC has laid down If there is neither anything in its condition, nor anything in evidence to indicate the intention of its owners or possessors, so as to connect it with an agricultural purpose, the land could not be "agricultural land" for the purposes of earning an exemption under the Act.


4)bank can auction sales land under SARFESi 

Ajay Sethi
Advocate, Mumbai
65426 Answers
3960 Consultations

5.0 on 5.0

If the agricultural land is not used for the purpose of agriculture then same can be auctioned under the Sarfesi there are such case laws.

Shubham Jhajharia
Advocate, Ahmedabad
18227 Answers
71 Consultations

5.0 on 5.0

1) Yes, if all is given in writing than Bank can sell land.

Ganesh Kadam
Advocate, Pune
7093 Answers
60 Consultations

4.9 on 5.0

If its mortgaged as security interest then it can be sold

Yusuf Rampurawala
Advocate, Mumbai
4317 Answers
22 Consultations

5.0 on 5.0

Agriculture land cannot be proceeded for recovery of loan. In case the agriculture land was mortgaged then only it can be auctioned otherwise the agriculture land cannot be auctioned by the bank. However, the Bank can approach the Court for executing the mortgage and for selling the same to recover its dues.

Mohammed Mujeeb
Advocate, Hyderabad
9336 Answers
3 Consultations

4.5 on 5.0

Dear Client,

Bar on creation of security interest on agriculture land is not absolute if the land is not under use of agri purpose. Than same proceeded under Sarfaesi Act.

Yogendra Singh Rajawat
Advocate, Jaipur
12246 Answers
13 Consultations

4.6 on 5.0

Th he sarfaesi act is not applicable on agricultural lands. But in your case it seems that the lands were converted under the land revenue code and was being put into use fir non agricultural purposes. Therefore the land now did come under the ambit of the sarfaesi act.


Rahul Mishra
Advocate, Lucknow
4113 Answers
11 Consultations

5.0 on 5.0

1. Agricultural land can not be mortgaged as per SARFAESI Act,2002.


2. However, if the said agricultural land is not being used for the purpose of agriculture for long and its locality is proved to be used for residential or commercial purpose, then such land can be used as collateral security and mortgaged with the bank while availing loan.

Krishna Kishore Ganguly
Advocate, Kolkata
22351 Answers
587 Consultations

5.0 on 5.0

Then it can be brought under auction sale, especially if it is a secure property.


T Kalaiselvan
Advocate, Vellore
55240 Answers
674 Consultations

5.0 on 5.0

agricultural land is outside the purview of the said Act and cant be sold by bank.

Prashant Nayak
Advocate, Mumbai
11640 Answers
18 Consultations

4.8 on 5.0

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