Home  /  Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002  /  Section 28

Section 28: Penalties for false information

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2002
Section 27 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 29

Legal Commentary & Landmark Judgments: Section 28

Section 28 of the SARFAESI Act, 2002 creates criminal liability and penal sanctions for willfully making false statements, furnishing fabricated documents, or omitting material facts in any application, return, or information submitted under the Act.

  • Willful False Statement: Criminalization of intentional false statements or material omissions in any application, document, or return filed under SARFAESI.
  • Penal Sanction: Punishable with imprisonment for a term extending up to one year, or with fine, or with both.
  • Mens Rea Requirement: Section 28 requires willful mendacity or conscious suppression of material facts, distinguishing inadvertent clerical errors from deliberate deception.
Key Landmark Precedents:
  • State of Maharashtra v. Mayer Hans George, AIR 1965 SC 722: A 3-Judge Bench established foundational principles on mens rea in statutory economic offences, holding that a 'willful' false statement requires conscious knowledge and intentional deception.
  • Kedar Narayan Parida v. State of Odisha, 2019 SCC OnLine Ori 120: The Orissa High Court held that Section 28 penalizes intentional misstatements and willful concealment in statutory filings under SARFAESI, protecting the sanctity of the Central Registry and regulatory returns.
Courtroom Practice & Strategic Litigation Guidance:

When a borrower or third party submits forged documents or fabricated lease deeds to stall Section 13(4) measures, file an application before the Chief Judicial Magistrate / Metropolitan Magistrate under Section 28 r/w Section 30 seeking prosecution for furnishing false statutory statements.

Section 27 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 29