Earnest Money Deposit Shortfall Does Not Vitiate Sale If 25% of Sale Price Is Paid on Auction Day Under SARFAESI: Supreme Court
New Delhi, August 23, 2026: The Supreme Court has ruled that an auction sale conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) cannot be cancelled merely because the auction purchaser initially deposited a small amount less than the prescribed Earnest Money Deposit (EMD). The Court held that when the successful auction purchaser subsequently fulfils the statutory requirement of depositing 25%…
