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DRT vs SARFAESI: Two Recovery Regimes, One Auction

Most bank auction properties come through SARFAESI. Some come through DRT recovery certificates. The path affects both bidding rules and the strength of your title.

NPAAUCTION.IN Editorial5 min readUpdated 20 July 2026

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The SARFAESI path

Bank issues 13(2) notice, takes possession under 13(4), and auctions under Rule 8/9 of the Security Interest (Enforcement) Rules. Buyer receives sale certificate directly from the bank's authorised officer.

The DRT path

When a bank files an Original Application at the DRT and obtains a Recovery Certificate, the Recovery Officer auctions the property under Second Schedule of the Income-Tax Act, 1961. Sale is confirmed by the Recovery Officer; title is stronger because it's already through a tribunal.

Buyer impact

DRT sales are less common but carry lower reversal risk.
SARFAESI sales are faster and dominate the market — bids often close within 30 days of notice.
Always check DRT/DRAT portals (drt.gov.in) for pending Section 17 challenges against the SARFAESI action before you bid.

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