Good news for bank/fis

Dear Pervez, Where can we get it? Is it published ?

There is nothing new in that amendenment. The only new remedy given to the bank is that defaulter cannot get a exparty stay in the backdrop of sarfeasi notice issued to him. The new amendment acts as a caveat against the action of defaulter. Even without this amendment banks were conducting the auction and collecting the money from auction purchasers without any hassles. 

Some of the essential feautures of the new amendments to SARFAESI Act are as under:

1. Multi state cooperative banks are also entitled to invoke SARFAESI Act . [The appeal in  Greater Bombay Cooperative Bank Ltd. Vs. United Yarn Tex (P) Ltd.]: AIR 2007 SC 1584 referred to larger bench of Supreme Court is pening disposal but the same will become infructuous in view of this amendment.

2. Secured sreditor can lodge CAVEAT and DRT cannot grant stay order without hearing the caveator.

3. For communicating reply to the borrower's representations / objections against the demand notice, the time limit of one week is enlarged to fifteen days

4. For invoking S.14, secured creditor has to filed affdavit setting out in brief, the details of action taken  enclosing evidence of action under S.13(2) & 13(3A), since the Magistrate has no adjudication power for giving assistance

5..Part of the debt can be converted to 'equity ' in case the NPA borrower is company .

6. If no tenders/bidders are coming forward to participate in public tenders or auction, then, the secured creditor may authorse one of its officer to participate in tenders/auction. If the officer so authorised is successful tederer or bidder the sale prise amount confirmed by secured creditor and payable by the officer need not  be deposited in the bank but adjusted by making credit entry to the loan account.   

Gazzette publication is attached

The amendment is reported in DRTC January 2013 publication.