• 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 2 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
59705 Answers
3613 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
14127 Answers
57 Consultations

5.0 on 5.0

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

Ganesh Kadam
Advocate, Pune
6253 Answers
46 Consultations

4.9 on 5.0

If its mortgaged as security interest then it can be sold

Yusuf Rampurawala
Advocate, Mumbai
3667 Answers
16 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
6203 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
8884 Answers
8 Consultations

4.7 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
2902 Answers
9 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
21447 Answers
549 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
49836 Answers
590 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
7054 Answers
7 Consultations

4.8 on 5.0

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