Section 4: Cancellation of certificate of registration.

Q: What does Section 4 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) deal with?

Section 4 SARFAESI pertains to "Cancellation of certificate of registration.". It is part of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a legislation enacted by the Parliament of India. Section 4 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs cancellation of certificate of registration. As verified on 22 May 2026.

Q: Is Section 4 SARFAESI still in force?

Yes, Section 4 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is currently in force across the Republic of India.

Q: What is धारा 4 SARFAESI?

धारा 4 SARFAESI is the Devanagari Hindi reference for Section 4 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Section 4 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs cancellation of certificate of registration. As verified on 22 May 2026.

Q: What is Dhara 4 SARFAESI?

Dhara 4 SARFAESI is the Roman Hindi reference for Section 4 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. "Dhara" means "Section" in Hindi. Section 4 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs cancellation of certificate of registration. As verified on 22 May 2026.

Q: How to cite Section 4 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002?

Cite as: "Section 4, The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)" in legal briefs. For academic writing, use the BlueBook format: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, 2002, § 4 (India).

Law on Tips Editorial Board

(1) The Reserve Bank may cancel a certificate of registration granted to a 1[asset reconstruction company], if such company—

Provided that before cancelling a certificate of registration on the ground that the 3[asset reconstruction company] has failed to comply with the provisions of clause (c) or has failed to fulfil any of the conditions referred to in clause (d) or sub-clause (iv) of clause (e), the Reserve Bank, unless it is of the opinion that the delay in cancelling the certificate of registration granted under sub-section (4) of section 3 shall be prejudicial to the public interest or the interests of the investors or the 3[asset reconstruction company], shall give an opportunity to such company on such terms as the Reserve Bank may specify for taking necessary steps to comply with such provisions or fulfilment of such conditions.

(2) A 3[asset reconstruction company] aggrieved by the order of 5*** cancellation of certificate of registration may prefer an appeal, within a period of thirty days from the date on which 6[such order of cancellation] is communicated to it, to the Central Government:

Provided that before rejecting an appeal such company shall be given a reasonable opportunity of being heard.

(3) A 3[asset reconstruction company], which is holding investments of 7[qualified buyers] and whose whose application for grant of certificate of registration has been rejected or certificate of registration has been cancelled shall, notwithstanding such rejection or cancellation be deemed to be a 3[asset reconstruction company]until it repays the entire investments held by it (together with interest, if any) within such period as the Reserve Bank may direct. 1. Subs. by s. 3, ibid., for "securitisation company or a reconstruction company " (w.e.f. 1-9-2016). 2. Subs. by Act 44 of 2016, s. 3, for "qualified institutional buyer " (w.e.f. 1-9-2016). 3. Subs. by s. 3,ibid.,for "securitisation company or reconstruction company " (w.e.f. 1-9-2016). 4. Subs. by s. 3, ibid., for "securitisation company or the reconstruction company " (w.e.f. 1-9-2016). 5. The words "rejection of application for registration or " omitted by Act 30 of 2004, s. 4 (w.e.f. 11-11-2004). 6. Subs. bys. 4,ibid.,for "such order of rejection or cancellation " (w.e.f. 11-11-2004).

7. Subs. by Act 44 of 2016, s. 3, for "qualified institutional buyers " (w.e.f. 1-9-2016).