L. Maria Elezeabeth, LLM, The Tamilnadu Dr.Ambedkar Law University, Chennai
Ms. T. Vaishali, B.A. (Eng.lit)., L.L.M., NET., Ph.D (Pursuing), Assistant Professor of Law, SOEL, The Tamilnadu Dr. Ambedkar Law University, Chennai
ABSTRACT
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, introduced in 2002 is an constructive act which helps banks/financial institutions to recover bad debts i.e, non- performing assets (NPAs). An assets becomes a non-performing assets when it stops to produce income to the banks/financial institutions. In India, a Non- Performing Asset (NPA) is generally a loan for which the borrower didn't pay any interest or principal for more than 90 days. Before 1993, banks had to go through a long and monotonous legal process to recover the money from borrowers who defaulted their loans. Hence to reconstruct this lacuna, the SARFAESI Act, 2002 came into spotlight. This article provides an In- depth Analysis of the SARFAESI Act, investigate its historical context, legal challenges and recommendations for reform.
Keywords: Non-performing Assets, SARFAESI Act, Debt, Asset Recovery.
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