Yes, under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, banks have the authority to auction properties to recover their dues without the intervention of the court. The Debt Recovery Tribunal (DRT) is involved in the process to oversee certain aspects of the proceedings. Here's a brief overview: Notice to the Borrower: Before initiating the auction process, the bank must serve a notice to the borrower and any other interested parties, specifying the default in repayment and providing them with an opportunity to rectify the default. Possession Notice: If the borrower fails to comply with the notice, the bank may take possession of the secured assets. Intimation to DRT: The bank is required to send an intimation to the concerned DRT about the possession of assets. Auction Process: The bank can then proceed to auction the secured assets to recover the outstanding dues. The auction can be conducted by the bank itself or through authorized agencies. DRT's Role: While the auction process is primarily managed by the bank, the DRT ensures that the provisions of the SARFAESI Act are followed. If there are any objections or grievances from the borrower, they can approach the DRT. It's important to note that the SARFAESI Act provides a framework for banks to recover their non-performing assets efficiently. However, the process should be carried out in accordance with the provisions of the Act, and borrowers have the right to appeal to the DRT in case of any grievances or non-compliance with the Act's provisions.

DEAR CLIENT, In India under the SARFAESI (securitization and reconstruction of financial assets and enforcement of security interest) Act, 2002 the bank or the financial institution can take actions and to auctions are property are without the intervention of the debt recovery tribunal DRT which provided that the property is secured under the valid security agreement. The SARFAESI act gives the bank and the financial institutional are the authority to the enforce their security are interest over the assets are of defaulting borrowers are without needing to the approach the courts. This process is the typically involves the following steps: Demand notice The borrower defaults are the lender who issues a demand notice under the section 13(2) of the SARFAESI Act asked to the borrower to pay the dues within the 60 days. Possession notice If the borrower fails are to repay within the prescribed time, the lender can take possessions of the property under the section 13(4) of the SARFAESI Act, either by the taking the possessions in the physical possessions or by the appointing of the receiver. Auction Once the property of the possessions of the lenders of the property they can proceed to sell the assets through an auction under the sections 13(8) of the SARFAESI ACT. At this stage the intervention of the debt recovery tribunal is not required unless the borrower challenges are the lenders action. If the borrowers are the feels aggrieved under they can approach the DRT under the section 17 of the SARFAESI act. The DRT has the authority to start hearing the appeals related to the possession and sale of the property and it can provide relief if the process is not followed correctly if the there are any legal violations. WE HOPE THIS CLARIFIES YOUR QUERY. PLEASE FEEL FREE TO REACHOUT FOR FURTHER ASSISSTANCE. THANK YOU.

DEAR CLIENT, Under the securitization and reconstruction of financial assets and enforcement of security interest act, 2002 (SARFAESI ACT) banks are able to auction properties without the direct intervention of the debt recovery tribunal DRT provided that they can adhere to the legal provisions set forth in the act. The SARFESI act enables banks and financial institutions to the recover their non – performing assets tht is without the court intervention by allowing them into enforce security interests in the event of the default by the borrowers. After the default, the bank can able to issue a demand notice to the borrower under the section 13(2) of the act which gives them a 60 days period to repay the outstanding the dues. If the borrower fails to comply with the bank can take further actions under the section 13(4) of the act take possession of the secured assets and thereby initiating the auction process. The law allows the banks to directly sell the said property either through public auction or through thr private treaty which is subject to the guidelines and procedures laid down in the SARFAESI AC. The bank must be also providing a notice of the possession to the borrower and to maintain transparency throughout the process and ensuring fair valuation and biding in the auction process. However, the DRT intervention may arise in the other aspects oof the particularly concerning the borrowers can challenge against the banks has thee violated any legal provisions or if they have the legitimate grounds to the contest the enforcement action,, they can file an applications with thee DRT under thee section 17 within only 45 days of taking the possession of the property. WE HOPE THIS CLARIFIES YOUR QUERY. PLEASE FEEL FREE TO REACHOUT FOR FURTHER ASSISSTANCE. THANK YOU.