Sections 29 and 30: Offences and Cognizance of Offences

Sections 29 and 30 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) address criminal offences, the authority to initiate prosecution and the level of court competent to try them. These provisions form part of Chapter V, dealing with offences and penalties.

Section 29 - Offences

Section 29 provides that any person who contravenes, attempts to contravene, or abets the contravention of a provision of the SARFAESI Act or rules made under it is punishable with imprisonment for a term which may extend to one year, or with fine, or with both.

Meaning of the statutory expressions

• Contravention: failure to comply with a binding statutory requirement or prohibition.
• Attempt: conduct directed toward committing a contravention, even if the intended contravention is not completed, subject to the legal requirements for proving an attempt.
• Abetment: legally culpable assistance, instigation or participation in a contravention; its elements must be established on the facts.
• Fine and imprisonment: Section 29 sets the maximum term of imprisonment at one year but does not specify a fixed fine amount in its own text. Punishment requires proceedings in accordance with law.

Section 29 is not confined to borrowers or lenders; its wording uses any person. Whether a particular act or omission constitutes an offence depends on the relevant obligation under the Act or rules and proof of the ingredients of the alleged contravention.

Section 30 - Cognizance of offences

Section 30(1): Written complaint by an authorised officer

A court cannot take cognizance of offences covered by Section 30, including offences under Section 29, except on a complaint in writing by an officer of the Central Registry or of the Reserve Bank of India who has been generally or specially authorised in writing by the Central Registrar or the Reserve Bank, as applicable. The statutory text also refers to Sections 27 and 28 and other provisions; however, Section 27 is deemed omitted under its 2016 proviso and Section 28 was omitted by the 2016 amendment. Those historical references should not be mistaken for currently operative offences.

Section 30(2): Court competent to try offences

No court below the level of a Metropolitan Magistrate or Judicial Magistrate of the First Class may try an offence punishable under the Act. The limitation concerns the minimum level of the trial court; ordinary rules of criminal procedure and jurisdiction otherwise remain relevant.

Practical implications for prosecution

1. Identify the precise statutory provision or rule allegedly breached and the acts constituting contravention, attempt or abetment.
2. Verify that the written complaint originates from a qualifying Central Registry or RBI officer and that the necessary written authorisation exists.
3. Distinguish the filing of a complaint from the court's decision to take cognizance and the subsequent trial.
4. Check that the competent Magistrate's court has jurisdiction and that the applicable criminal procedure and limitation requirements, if any, are satisfied.

Amendment history and related provisions

Section 30 was substituted by Act 1 of 2013, section 10, with effect from 15 January 2013. The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 (Act 44 of 2016) made further changes in the penalties framework: Section 27 includes a proviso deeming it omitted from the relevant commencement date, while Section 28 was expressly omitted. Other connected provisions include Section 30A (adjudicating authority and penalties), Sections 30B and 30C (appeal and appellate authority), Section 30D (recovery of penalties), and Section 33 (offences by companies).

Official legal sources

For the latest consolidated statutory wording and subordinate legislation, consult India Code. Amendments, commencement notifications and rules may be checked through the Gazette of India. The Reserve Bank of India provides official regulatory publications, while CERSAI provides Central Registry information. For a specific prosecution, refer to the applicable text in force on the date of the alleged act and any relevant transitional or saving provisions.