Lok Sabha Question No. 645 (UNSTARRED), answered on 2016-11-18
Subject: Banks Seized Property against NPAs
Ministry: FINANCE
Asked by: HARISHCHANDRA DEORAM CHAVAN, RAM TAHAL CHOUDHARY

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT QF FINANCIAL SERVICES

## LOK SABHA

## TO BE ANSWERED ON THE 18TH NOVEMBER, 2016/ KARTIKA 27, 1938 (SAKA) BANKS SEIZED PROPERTY AGAINST NPAs

## 645. SHRI HARISHCHANDRA CHAVAN: SHRI RAM TAHAL CHOUDHARY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the banks seizedltaken possession of property belongs to Non-Performing Assets;
- (b) if so, the details of property seizedlrecovered/taken possession by banks during the last three years and current year, bank and state-wise; and
- (c) the steps taken by the Government in this regard?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI SANTOSH KUMAR GANGWAR)

- (a) and (b): Yes Sir, the banks seized/take possession of property under SARFAESI Act. The details of properties seizedlrecoveredltaken possession by banks during the last three years and current year is as under:
- (c) The   Insolvency and Bankruptcy code (IBC) has been enacted and Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) and The Recovery of Debts due to Banks and Act have been amended to improve resolutionlrecovery of bank loans viz:

| NUMBER OF PROPERTY SEIZEDI SYMBOLICI PHYSICAL POSSESSION TAKEN DURING THE LAST THREE YEARS AND CURRENT YEAR   | NUMBER OF PROPERTY SEIZEDI SYMBOLICI PHYSICAL POSSESSION TAKEN DURING THE LAST THREE YEARS AND CURRENT YEAR   | NUMBER OF PROPERTY SEIZEDI SYMBOLICI PHYSICAL POSSESSION TAKEN DURING THE LAST THREE YEARS AND CURRENT YEAR   | NUMBER OF PROPERTY SEIZEDI SYMBOLICI PHYSICAL POSSESSION TAKEN DURING THE LAST THREE YEARS AND CURRENT YEAR   | NUMBER OF PROPERTY SEIZEDI SYMBOLICI PHYSICAL POSSESSION TAKEN DURING THE LAST THREE YEARS AND CURRENT YEAR   |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                                                                               | 2013-14                                                                                                       | 2014-15                                                                                                       | 2015-16                                                                                                       | Jun-16                                                                                                        |
| PUBLIC SECTOR BANKS                                                                                           | 37,903                                                                                                        | 54,060                                                                                                        | 64,519                                                                                                        | 33,928                                                                                                        |

Source: PSBs,

Note: State-wise information is not available.

## SARFAESL Act:

- The provision has been added that the DMICMM shall dispose-off application moved by secured creditor under section 14 of the Act; within a period of days thirty
- ii) The mortgage of property cannot be redeemed after the publication of notice for public auction.
- (iii) The jurisdiction for Securitisation applications before DRTs have also been inserted to minimise the dispute on this filing point.
- (iv) DRTs have been given jurisdiction to settle any claim in respect of secured assets.

## RDDBFL Act:

- After service of summons, the defendant shall not transfer any secured assets without approval of the Tribunal: prior
- (i) Specific time period has been provided for different stages of the original application filed by banks and financial institution:
- (iii) It has been inserted that every effort shall be made by Tribunal to complete the proceedings in two hearings.

The Government has recently issued advisory to banks to take action against guarantors in event of default by borrower since in the event of default; the liability of the guarantor is cOextensive with the borrower.