DRT Matter

nishad (Querist) 23 January 2011 This query is : Resolved
Can a Recovery Officer of the DRT release one of the items of secured property out of many mortgaged to the bank u/r Rule 66 of the second schedule of the IT Act.Does he/she has the powers to do the same with out the interference of PO
Please guide

Follow Query

Report Abuse

M V Gupta (Expert) 24 January 2011
Recovery Officer of the DRT(Debt Recovery Trbunal) cannot release any of the items of the secured property. His role is only to rcover the dues of the bank by enforicng the security created in favor of the Bank. Rule 66 of the second schedule of the IT Act refers to the powers of the IT Recovery Officer to permit the defaulter of taxes to raise money by creating mortgage, lease or private sale of the property attached by him and pay up the proceeds of such mortgage/lease/private sale to pay the tax arrears. Hence the said rule is not applicable to the DRT Recovery Officer.