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Section 29: Offences by companies

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 28 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 30

Legal Commentary & Landmark Judgments: Section 29

Section 29 of the SARFAESI Act, 2002 penalizes the failure to produce books of account, registers, statements, or other required financial documentation by any person obligated to furnish them under the Act.

  • Statutory Duty to Produce: Applies to borrowers, corporate officers, and entities obligated under the Act or rules to produce books, accounts, or records.
  • Monetary Penal Sanction: Punishable with fine extending up to ₹1 lakh, and in the case of continuing failure, further fine extending up to ₹10,000 for each day of default.
  • Compelling Disclosure Mechanism: Provides a coercive statutory sanction to compel production of hidden assets and forensic accounting records.
Key Landmark Precedents:
  • Sardar Associates v. Punjab & Sind Bank (2009) 8 SCC 257: The Supreme Court affirmed that banks and borrowers alike are subject to statutory guidelines and disclosure requirements; non-disclosure or suppression of financial records impairs the statutory machinery.
  • State of Rajasthan v. Gotan Lime Stone Khanij Udyog (P) Ltd. (2016) 4 SCC 469: The Supreme Court applied the doctrine of lifting the corporate veil to enforce statutory disclosure obligations in regulatory frameworks.
Courtroom Practice & Strategic Litigation Guidance:

Use Section 29 as leverage in DRT discovery proceedings; where the borrower refuses to produce audited balance sheets, asset lists, or bank statements, seek an order from DRT invoking Section 29 sanctions for willful non-production of accounts.

Section 28 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 30