CLIENT PROFILE
A mid-sized Asset Reconstruction Company managing secured stressed assets acquired from multiple originating banks and NBFCs, spanning mortgage, loan-against-property, and SME secured portfolios across several states.
BUSINESS CONTEXT
As the ARC’s acquired portfolio grew across originators, resolution managers were tracking SARFAESI milestones – demand notices, possession, publication, and legal action – using individually maintained spreadsheets and physical case files.
This made it difficult for management to obtain a consistent, portfolio-level view of where each asset stood in the recovery timeline, or to identify cases at risk of missing statutory deadlines.
CHALLENGE
- SARFAESI action tracking – demand notice issuance, possession timelines, publication requirements, and documentation – was managed manually per resolution manager, with no standardized case status taxonomy.
- There was no systematic ageing view to flag assets where legal action was overdue relative to statutory or internal timelines.
- Collateral and property-level information was scattered across physical files and local spreadsheets, making it difficult to retrieve a complete asset record quickly.
- Coordination between internal resolution teams, external legal counsel, and valuers relied on email threads, with no centralized task assignment or status visibility.
CLEARDU PLATFORM IMPLEMENTED
Primary platform: SARFAESI 360
SARFAESI 360 was implemented as the primary platform because the requirement was specialized tracking of secured recovery workflows, legal milestones, and collateral-level records – the specific purpose the platform is designed for.
DETAILED SOFTWARE IMPLEMENTATION
- Asset-level records were onboarded for each acquired account, capturing borrower details, loan terms, collateral description, and prior recovery action history.
- SARFAESI workflow stages – demand notice, possession, publication, sale, and legal proceedings – were configured as trackable milestones with defined statutory and internal timelines for each.
- Ageing dashboards were built to flag assets approaching or exceeding milestone deadlines, escalating automatically to resolution managers and team leads.
- Task assignment and stakeholder coordination workflows were configured to route action items to internal teams, external legal counsel, and valuers, with status updates captured centrally.
- A document repository was established for each asset, consolidating notices, valuation reports, possession documentation, and correspondence in one place.
- Portfolio-level dashboards were configured to give management a segmented view by originator, vintage, security type, and recovery stage.
PROCESS TRANSFORMATION
Before: Before SARFAESI 360, milestone tracking was manual and resolution-manager-specific, with no ageing visibility and collateral information scattered across physical files.
After: After implementation, every asset’s SARFAESI stage, ageing status, and documentation are visible centrally, with automated escalation of overdue action items and structured coordination across internal and external stakeholders.
- Resolution managers get a prioritized view of assets requiring imminent action.
- Legal teams can track case status and documentation without chasing physical files.
- Senior management and investors gain portfolio-level visibility into recovery progress by originator and vintage.
PLATFORM CAPABILITIES USED
- Secured loan and collateral-level records
- SARFAESI milestone and demand notice tracking
- Possession-stage and publication tracking
- Legal action ageing monitoring
- Task and action assignment
- Internal and external stakeholder coordination
- Document repository
- Portfolio-level dashboards
- Compliance and audit trails
KEY RESULTS
- 30% faster SARFAESI action tracking and milestone closure
- 26% reduction in overdue legal action items
- 100% asset-level traceability across acquired pools
- 38% reduction in portfolio reporting turnaround time for management and investor updates
IMPLEMENTATION CONSIDERATIONS AND CONTROLS
- Asset onboarding included data validation to reconcile originator records with the ARC’s own documentation.
- Role-based access separated internal resolution teams, external counsel, and management reporting views.
- Escalation alerts were tuned to statutory timelines specific to each recovery stage.
- A structured document repository reduced dependency on physical files during audits and legal proceedings.
CONCLUSION
By moving SARFAESI tracking from scattered spreadsheets and physical files onto a centralized, milestone-driven platform, the ARC gained consistent, portfolio-wide visibility into secured recovery progress. Faster identification of overdue actions, structured stakeholder coordination, and asset-level traceability together strengthened both recovery pace and audit readiness across the acquired portfolio.