The Securitization, Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is an important legislation enacted in India with the primary objective of empowering banks and financial institutions to recover their non-performing assets in a speedy and effective manner. Before the enactment of this law, recovery of loans was a long and complicated process that depended mainly on civil courts, which resulted in huge delays and mounting bad debts. The Act was introduced to strengthen the financial system by providing legal mechanisms for enforcement of security interests without the intervention of courts in normal circumstances. One of the most significant features of the Act is that it allows banks and financial institutions to take possession of secured assets of a borrower when the loan account becomes a non-performing asset. Once an account is classified as NPA, the secured creditor is authorized to issue a notice to the borrower demanding repayment of dues within sixty days, and if the borrower fails to comply, the lender can take further action under the Act. Another important feature of the Act is the provision for creation and regulation of Securitization Companies and Asset Reconstruction Companies. These institutions are permitted to