HFCs above Rs 100 cr can use SARFAESI Law

  • The Ministry of Finance has allowed Housing Finance Companies (HFCs) with asset sizes of more than Rs. 100 crore to recover the dues using SARFAESI law.
  • Prior to this, Finance Ministry allowed HFCs with assets over Rs. 500 crore to use SARFAESI law to recover dues.
  • The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) allows banks and other financial institution to auction residential or commercial properties to recover loans.