As the burden of NPAs (Non-Performing Assets) on banks matured, the financial institutions are struggling to recover the due amount by attaching the properties of defaulters under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act of 2002.
Sources cited that nearly 2,784 cases are still unsettled after over 60 days accounting for dues of over INR 1,535.
Roughly, 3,487 cases were filed by the banks with district magistrates for property attachment in order to recover debts accounting for 1,885 crores in Gujarat.
According to the report released by the State Level Bankers’ Committee (SLBC), the number of pending cases has increased from 2,429 in the quarter that ended in March 2022 to 3,487 in the quarter that concluded in June 2022.
The Bank of Baroda hosted SLBC’s 174th meet in Ahmedabad city on Saturday, September 17, 2022.
Reportedly, it has gotten worse and thus the number of cases pending with DMs for recoveries under the act has increased by around 43 percent in just one quarter.
Sources also claimed- “If the district magistrates had issued the orders beforehand, they would have encouraged the collectors to dispose of the pending matters on time by assuring the possession of the due amount by the appropriate banks and financial institutions.”
However, that has not yet happened, as the pendency has gone up.
The DMs have already issued orders for 944 cases, but the possession is yet to be handed over to the banks to recover the due amount of INR 978 crore.
Cities and districts with highest pendency with the district magistrates included: Surat (1,150); Vadodara (656); Ahmedabad (291); Rajkot (167); Kutch (146); Anand (127); Valsad (108) including Gandhinagar with 100 pending cases.
The aforementioned districts account for the highest pendency of the cases with the DMs, which duly explains that nearly 75 percent of the total recovery amount, is still unsettled amounting to INR 1,424 crore.
