SBI acting as per remedies available under SARFAESI cannot be termed as dominant entity

Last updated: 04 January 2023

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The Competition Commission of India (CCI) has ruled that a bank, such as the State Bank of India (SBI), acting under the remedies provided by the SARFAESI Act to recover outstanding dues, cannot be considered a dominant entity abusing its position. The CCI found that such actions are part of a legitimate recovery process to mitigate losses when an account is declared Non-Performing Asset (NPA). Therefore, auctions initiated by banks as secured creditors under SARFAESI for recovery do not violate the Competition Act.

Court :
Competition Commission of India

Brief :
A bank acting as per the remedies available to it under the SARFAESI Act for recovery cannot be termed as a dominant entity when it acts in accordance with provision thereof as it is acting in recovery of its funds/money in order to mitigate losses in such transaction (where account has been declared NPA).

Citation :
RH Agro Private Limited vs. State Bank of India and Ors

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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