In Brief
Bank officers who initiated recovery proceedings against a defaulted borrower under the SARFAESI Act were accused of conspiracy and fraud in a criminal complaint filed by the borrower. The borrower had previously challenged the recovery through writ petitions and applications before debt recovery tribunals, all of which were dismissed. The Supreme Court quashed the criminal complaint and FIR against the officers, holding that the SARFAESI Act provides a complete statutory code with specialized forums (DRT/DRAT) to adjudicate disputes over asset recovery. Criminal prosecution for actions taken within this regulatory framework would impermissibly allow police to review tribunal decisions and constitute abuse of process. The Court directed the borrower to pursue remaining statutory remedies if desired.
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