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RU
Govt Examines Excluding Coffee Plantations from SARFAESI Act
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taxguruin
The issue relates to Section 31(i) of the SARFAESI Act, which excludes security interests created in agricultural land, while the Act does not define “agricultural land,” leaving its definition to the concerned State Government under its revenue laws.
*106 FOR JULY 27, 2026, REGARDING “IMPACT OF SARFAESI PROCEEDINGS” BY SHRI SHREYAS M PATEL, HON’BLE MEMBER OF PARLIAMENT(a) to (c) Representations have been received by the Government, seeking exclusion of coffee plantations from proceedings under the SARFAESI Act.
The issue pertains to inclusion of coffee plantations under the purview of Section 31(i) of the SARFAESI Act, which provides that the provisions of the Act shall not apply to any security interest created in agricultural land.
While the SARFAESI Act has given exemption in respect of agricultural land vide the above proviso, the Act does not define what constitutes an ‘agricultural land’ as the definition of agricultural land is determined by the concerned State Government through their revenue laws.
Further, in order to address the concerns regarding enforcement action under SARFAESI Act by any secured creditor, adequate provision has been made under Section 17 of the SARFAESI Act, wherein any person (including borrower) aggrieved, has recourse to filing of Securitisation Application (SA) in the Debts Recovery Tribunal (DRT) against the action of secured creditor under the SARFAESI Act.