Seizing Constitutionally: A Due Process Perspective On SARFAESI And The Right To Property Under Article 300a

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Kushagra Sharma, Chanakya National Law University, Patna, Bihar

ABSTRACT

This article examines the relationship between the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) and the Right to Property under Article 300A of the Indian Constitution. SARFAESI enables financial institutions to recover Non-Performing Assets (NPAs) through asset seizure, raising questions about its compatibility with Article 300A's protection against arbitrary property deprivation. Analysing SARFAESI's provisions (Sections 13(2), 13(3A), 13(4), and 17) and the Supreme Court’s guidelines in Kolkata Municipal Corporation v. Bimal Kumar Shah, the article argues that SARFAESI, while facilitating efficient recovery, aligns with Article 300A by incorporating due process elements like notice and the opportunity to be heard. The Act also serves the public interest by safeguarding depositor funds. The conclusion is that SARFAESI, when properly applied, balances financial needs with property rights, though ongoing oversight is needed to prevent misuse.

SEIZING CONSTITUTIONALLY- A DUE PROCESS PERSPECTIVE ON SARFAESI AND THE RIGHT TO PROPERTY .

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