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Sec 31A, SARFAESI Act 2002: Banks / Financial Institutions Exemption

Section 31A (Power to exempt a class or classes of banks or financial institutions) under Chapter VI (Miscellaneous) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 —

(1) The Central Government may, by notification in the public interest, direct that any of the provisions of this Act,—

 (a) shall not apply to such class or classes of banks or financial institutions; or

 (b) shall apply to the class or classes of banks or financial institutions with such exceptions, modifications and adaptations, as may be specified in the notification.

(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.

(3) In reckoning any such period of thirty days as is referred to in sub-section (2), no account shall be taken of any period during which the House referred to in sub-section (2) is prorogued or adjourned for more than four consecutive days.

(4) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.




Extra Notes for Readers

(1) Section 31A of SARFAESI Act, 2002 was inserted by the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 (Act 1 of 2013), sec. 11, (w.e.f. 15-Jan-2013).

(2) Section 31A of SARFAESI Act, 2002 was modified by the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (Act 44 of 2016), sec. 23, (w.e.f. 1-Sep-2016).

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