Bank of Baroda flags delay in disposal of applications under SARFAESI Act

Bank of Baroda has flagged the issue of delay in disposal of applications under section 14 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI Act), 2002, for taking possession of property of NPA borrowers, by the District Magistrates and Chief Metropolitan Magistrates in Tamil Nadu.

In a representation to the State-level bankers’ committee, the bank said it has a total of 218 such applications pending across the State. As per the details given by the bank, 24 applications are pending in Kancheepuram, 23 in Coimbatore and 21 in Cuddalore respectively.

The bank pointed out inordinate delay in disposing the applications was creating hitches in realising the main objective of SARFAESI Act, that was speedy recovery of bank dues without court intervention.

Bank of Baroda also pointed out a letter by Secretary (Expenditure) to all District Collectors in 2017 on the issue.

“As per section 14 of the SARFAESI Act, 2002, the Authorized Officer of lending banks can approach the District Collectors being the Chief Metropolitan Magistrates/ District Magistrates by filing an application to take actual possession/control over the property of the NPA borrower. According to the Act, the District Collectors are supposed to act on the application within a period of 30 days for the purpose of taking possession by lending banks. Therefore, I am to request you to take immediate action without any delay,” Secretary (Expenditure) had said in his letter.

Bank of Baroda sought for the issue to be raised with the State government and to request them to issue suitable directions for speedy disposal of the applications.

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