Recovery of dues from sra mumbai tenant from banl

Hello Harish,

I have gone through your question and appreciate your worry on the matter of recovering the debts owed. And here I am to give you a bit of advice that might help you out.

According to the existing laws, any funds advanced by a financial corporation shall be settled by the debtor without discriminating whether the loan was provided long before or after the SRA Scheme came into force. The financial institutions are entitled to recover dues even from the individuals who are living in the SRA societies. However, there are certain provisions and legal frameworks for the process.

Following The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, all financial institutions have the authority to get the dues recovered by taking possession of secured assets with any kind of intervention of the courts.

There is no doubt in this that SRA flats come with certain restrictions regarding the transferability for a period of time which is usually set for 10 years from allotment.

With reference to the Maharashtra Slum Areas (Improvement, Clearance, and Redevelopment) Act, 1971, the people who get the SRA flats are not allowed to sell their flats during the restricted period, which subsequently limits the ability of the financial institutions to attach and auction such properties for the recovery of the loan.

In the case of Suraj Lamps & Industries Pvt. Ltd. v. State of Haryana (2012), the Supreme Court has held that the legality of restrictions on the sale or transfer of certain types of properties is upheld. This principle also applies to the flats of SRA, which ensures that the intended beneficiaries of the scheme retain their properties.

However, as per the case of State Bank of India v. Santosh Gupta (2017), the legal system does not prevent banks from resorting to other means of recovering their dues, such as wage garnishment or the imposition of liens on other properties.

I hope I was able to clear your doubts, if you need further clarification, feel free to ask me on LinkedIn. (www.linkedin.com/in/pankhuri-rastogi-9221b2289)