– The SARFAESI Act has been amended on 12-8-2016 to extend the scope of the Act to provide for registration of security interest held by all other creditors, in addition to the banks and financial institutions defined as secured creditors under the Act
– Section 26B(4) of SARFESI Act enjoins every authority or officer of the Central Government or any State Government or local authority entrusted with the function of recovery of tax or other Government dues and for issuing any order for attachment of any property of any person liable to pay the tax or Government dues, to file with the Central Registry (CERSAI) any order of attachment of any property issued by them.
– As per section 26C(1) of SARFESI Act registration with CERSAI shall be deemed to constitute a public notice of such a transaction
– Section 26C(2) lays down that such a registered security interest shall have priority over any subsequent security interest created upon such property in any fashion like sale, lease or attachment by any other authority/person
– Therefore it becomes very important that as soon as an attachment order is issued under the Income-tax Act, a copy of the same is sent to CERSAI as well.
Registration would have to be done in the for prescribed for the purpose which can be downloaded from the website of CERSAI i.e. www.cersai.org.in.