The Hindu Business Line : LIC Housing Fin gets tough with defaulters

LIC Housing Finance Ltd has initiated action against the housing loan defaulters under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SRFAESA), a news release from the company said.

The company has started issuing preliminary notices under the Act, following approval by its board of directors.

"We have initiated legal steps to recover our dues and started issuing notices to defaulters," said Mr. S N Bhattacharya, Regional Manager, LIC Housing Finance. "Inclusion of housing finance companies in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, will facilitate our recovery efforts."

The Ministry of Finance {lcub}Department of Economic Affairs (Banking Division){rcub} had, through its notification of November 10, 2003, included housing finance companies registered under National Housing Bank Act and having Tier I capital of more than Rs 10 crore, within the purview of the Securitisation Act, pointed out the news release.

Accordingly any eligible housing finance company can issue a notice to the defaulting borrower under this Act, take possession of the secured assets of the borrower after the end of sixty days and sell the secured assets to recover its dues.

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