Received a SARFAESI Notice? Here's What to Do in the First 60 Days

Receiving a Section 13(2) demand notice is alarming, but the law builds in a 60-day period before any possession action can be taken. How that window is used matters more than almost anything else in the entire enforcement process.

Read the Notice Carefully

Check the outstanding amount claimed against your own records, confirm the secured assets listed match the actual security documents, and note the exact date the 60-day period runs from. Errors here are common and can matter significantly later.

Do Not Ignore It

Silence does not stop enforcement; it simply allows the 60-day period to run out without any representation on record. Whatever your position, engaging with the notice within the timeline preserves options that disappear once it is ignored.

File a Representation if You Have Grounds

If you dispute the amount, the classification, or the notice itself, Section 13(3A) gives you the right to submit a written representation. The bank is legally required to consider it and respond with reasons if rejected, and this record becomes important if the matter later reaches the DRT.

Explore Settlement in Parallel

Many lenders remain open to a One Time Settlement or restructuring discussion even after a notice is issued, and pursuing this in parallel with any legal response does not weaken your position.

Get Legal Advice Early, Not After Possession

The strongest legal position is built during the notice period, not after possession has already occurred. A lawyer reviewing the notice early can identify genuine procedural defects, distinct from simply disputing the debt, that carry real weight before the Tribunal.

What Happens if the 60 Days Pass

If the dues remain unpaid once the period lapses, the secured creditor becomes entitled to take possession under Section 13(4). Even at that stage, a Section 17 application before the DRT remains available if the enforcement itself was procedurally defective.