Wrote on 20 April 2012
I fully agree with you and feel there should be some legislation because it appears banks are misusing their prowers
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Wrote on 16 April 2012
The Author does not appear to have read the Statement of Objects of the SARFAESI Act. He has tried to compare 'Chalk' and 'Cheese'. Comparing two uncomparable things would result in 'absurdity'. This Article is not an exception to the same.
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Wrote on 16 April 2012
Of course this act will be very harm to consumeer.Taking over possession of property is illegal now with the use of police bankers will take the possession. law makers have made the illegallity in to legality by a Legislation favouring the bankers.yuvnesh
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Wrote on 15 April 2012
Nice article, yes! this law needs some modification
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Wrote on 14 April 2012
If banks can recover their dues from borrowers using SARFAESI as easily as perceived by the author the total NPA as on date should have been 100 or 1000 crores and not 1 lakh crore.
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Wrote on 13 April 2012
in my comments please read small paragraph first and big paragraph next for continuity in reading
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Wrote on 13 April 2012
My further views:
Actually, based on the Report of Narasimham Committee (in 1992) which laid down foundation in bringing reforms in the banking sector the prudential norms on asset classification were introduced in asset port folio by RBI w.e.f. 31.03.1993. DRTs wre established but for various reasons adjudication of claims originally filed and those transfered fromcivil courts and High Courts were delayed and the aim of the Act for disposal within 6 months was defeated. Hence the present Act is enacted to avoid adjudication process. Instad of that post action scrutiny and approval is put in place so that the banks need not wait for years together t recover their debts. In order to reach global standards the concept of 90 days on loan impairment was introduced by RBI with effect from 31.03.2004. Banks have to prevent accumaltion of NPAs and ensure that in order to strenthen viability of banks the banks have to maintain clean and NPA less balance sheets an this is possible only if Security interest is enforced in NPA accounts. No doubt the provisions of the SARFAESI Act are stringent in nature as borrowers tend to avoid payment in time and delay the same at their sweet will and pleasure. NPAs are burden to the bank in balance sheet as they have to be provided at certain per centage of money out of profit and the banks capital adequacy will effected. The Act in fact is not so stringent as State Financial Corporations (SFC Act) 1951 when compared to.
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Wrote on 13 April 2012
I am unable to agree with the views. After nationalisation of banks in 1969 and 1980, eventhough the banks achieved phenomina geographical growth in the country and menace of money lenders was curtailed, the banks suffered losses year after year becuse the money lent to the borrowers did not come back to the system in time. Andhyarjina Committee studied the entire system and found that the delay in recovery of the money lent is due to the time consumed in the adjudiation process. Unless banks recover the dues in the line way the State financial corporations and land mortgage banks recover the dues the losses cannot be stoped.
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