In Brief
This consolidated judgment resolves whether the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) applies to cooperative banks. The Supreme Court held that the meaning of 'banking' is not static but evolves with established banking practices. The SARFAESI Act validly applies to cooperative banks and is within Parliament's legislative competence under Entry 45 of the Constitution. Banks may enforce security interest without court intervention under the Act, with appeals available to the Debts Recovery Tribunal. The judgment rejects arguments that banking has a narrow definition and confirms the broad applicability of the Act.
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