The Hindu Business Line : PSBs recover Rs 6,376-cr dues till March 2006

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 enabled banks to enforce security interest for realisation of dues without the intervention of courts or tribunals.

In a report on the working of PSBs, tabled recently in Parliament, the Government had disclosed that the 28 public sector banks have, since the commencement of the SARFAESI Act and till March 31, 2006, issued 1,18,980 notices for an outstanding amount of Rs 35,650 crore. An amount of Rs 6,376 crore has been recovered from 65,334 cases.

The Government had, in 2004, amended the Securitisation Act to enable the secured creditors to make speedy recovery through enforcement of security interest. The Supreme Court had, in April 2004, upheld the right of the banks and financial institutions to attach and sell assets of defaulting companies and the borrower's right to appeal.

Meanwhile, the report also said that PSBs have so for recovered an amount of Rs 10,930.81 crore through the cases adjudicated by the debt recovery tribunals (DRTs). As on March 31, 2006, out of 61,634 cases (Rs 87, 983.77 crore) filed by PSBs in DRTs, 31,921 cases (Rs 33,241.4 crore) have been adjudicated by such tribunals.

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