What is mean by sarfaesi act?

The SARFAESI Act, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, was enacted in India in 2002. It allows banks and financial institutions to auction properties when borrowers default on loans, facilitating the recovery of bad debts. The act enables lenders to enforce security interests without court intervention, thereby streamlining the process of asset recovery. Its primary aim is to improve the financial health of banks and reduce the incidence of non-performing assets.