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The SARFAESI Act of 2002 stands as a game-changing legislation that empowered Indian banks and financial institutions to recover bad debts without lengthy court proceedings. By allowing secured creditors to directly take possession and sell mortgaged properties of defaulting borrowers, the Act significantly streamlined the debt recovery process and reduced non-performing assets in the banking sector. This landmark law not only accelerated recovery timelines from years to months but also established a framework for asset reconstruction companies to help clean up bank balance sheets, fundamentally transforming how India’s financial system handles distressed assets.