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SC Sets Aside HC Order Limiting SARFAESI Earnest Money Forfeiture
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AdvertisementAuthorised Officer Vs Shanmugavelu (Supreme Court of India) The Supreme Court considered appeals filed by a nationalised bank against a common judgment of the Madras High Court concerning forfeiture of the earnest money deposit (EMD) paid by the successful auction purchaser in an e-auction conducted under the SARFAESI Act.
The bank had auctioned a secured asset after the borrower was classified as a non-performing asset and measures were taken under Section 13(4) of the SARFAESI Act.
The respondent emerged as the highest bidder at Rs.12.27 crore and deposited 25% of the bid amount amounting to...