declaration of NPA by financial institution

Querist : Anonymous (Querist) 02 April 2011 This query is : Resolved
Respected Experts
I there any standard guideline to be follow by the bank/financial institution before declare the asset or account to be non performing under SARFAESI Act.

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RAJU O.F., (Expert) 02 April 2011
As per Sec.13(2) of SARFAESI Act, the bank/FI can initiate proceedings under the Act, only if the account is classified as NPA. Further, in Sec.2(o) of the said Act, NPA is defined. Andhra Pradesh High Court has given a detailed judgement regarding classification of account as NPA, which is reported in II(2010)Banking Cases 96(DB), in case of Sravan Dall Mill(P) Ltd Vs Central Bank of India.

Querist : Anonymous (Querist) 03 April 2011
@RAJU O.F.,
Sir really thank's you for your full and concise guidance.

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