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What are the steps to be taken by the secured creditor to proceed further under the SARFAESI Act if the borrower avoids notice or if the demand notice could not be served by the modes available?
SARFAESI Act is brought into force to enable the banks and financial institutions to get a speedy remedy by enforcing security interest created in their favour by borrowers. There are certain procedures to be followed by the banks and financial institutions while initiating the action under the SARFAESI Act. A demand notice under Section 13(2) of the Act is mandatory. However, some willful defaulters may try to avoid this notice in the belief to defeat the purpose of the Act. We have a Civil Procedure Code and Civil Rules of Practise which details the procedure to be followed while sending the notice to persons in different circumstances. The SARFAESI Act and Rules also details similar procedure.
If the borrower avoids notice or where demand notice could not be served by the modes available, a copy of the demand notice may be affixed on the outer door or some other conspicuous part of the house or building where the borrower/owner resides or carries on business and also by publishing the contents of the demand notice in two leading newspapers, out of which one in vernacular language, in vernacular newspaper having sufficient circulation in the locality. If borrower fails to pay the amount demanded by the bank within 60 days from the date of publication of the notice, the bank can proceed to take possession of the property.

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