<P> The act was amended by "Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016", passed by Lok Sabha on 2 August 2016 . Act passed by Rajya Sabha by voice vote on August 10, 2016 </P> <P> In Mardia Chemicals Ltd. v. ICICI Bank, on 8 April 2004, the Supreme Court of India declared the Sarfaesi Act to be constitutionally valid . The Court said that a borrower may appeal against the lender in the debt recovery tribunal, without having to deposit 75% of the amount of the debt . If the tribunal does not stay the order, the lender may sell the assets . </P> <P> After this law passed, on 27 November 2002, ICICI Bank took possession of Mardia Chemical plant in Vatva, Ahmedabad district, Gujarat . ICICI Bank was owed ₹ 300 crore, in all it owed ₹ 1,450 crore to 20 lenders . </P>

Securitisation and reconstruction of financial assets and enforcement of security interest rules