Enforcement Agents (EAs) are appointed by banks and financial institutions under the SARFAESI Act to take possession of and sell the secured assets of defaulting borrowers. EAs are authorized to act on behalf of banks and financial institutions to enforce the provisions of the act.
The key functions of EAs under the SARFAESI Act include:
- Taking possession of secured assets: EAs are authorized to take possession of the secured assets of defaulting borrowers on behalf of banks and financial institutions. They can take possession of movable or immovable property, including land, buildings, machinery, vehicles, and other assets.
- Securing and managing the assets: EAs are responsible for securing and managing the assets taken into possession. They are required to take adequate measures to protect the assets and ensure that they remain in good condition until they are sold.
- Selling the assets: EAs are authorized to sell the assets taken into possession on behalf of banks and financial institutions. They can sell the assets through public auction, private treaty, or any other method approved by the banks and financial institutions.
- Maintaining records and accounts: EAs are required to maintain records and accounts of all transactions related to the enforcement of security interest. They are required to submit regular reports to the banks and financial institutions on the status of the assets and the progress of the enforcement proceedings.
EAs play a crucial role in the enforcement of security interest by banks and financial institutions under the SARFAESI Act. They are required to act in a professional and ethical manner and ensure that the rights of defaulting borrowers are protected to the extent possible under the law.