SARFAESI is finally reality in J&K: Banks to take mortgaged properties within 60 days

Ziraat Times Team Report

Srinagar: In a major development, Jammu & Kashmir administration has formally written to all District Magistrates to assist banks and financial institutions to take physical possession of properties mortgaged for loans that have faced a default.

A communication from the Finance Department No. FD/BKG/12/J/2020, dated 3 December, 2020, a copy of which is with Ziraat Times, also states that “in case of defaults where time limit of 60 days have already lapsed, the same may be cleared within a week positively.”

The Finance Department communication reads: Department of Financial Services, Ministry of Finance, Govt of India has intimated that applications filed under Section 14 of the above act by the banks and financial institutions with district magistrates often remain pending with them for more than 60 days.

“Accordingly, I am directed to request all Das to coordinate with all relevant banks/FIs in recovering dues from defaulters and clear all the pending applications u/s 14 of the SARFAESI Act well within the prescribed period of 60 days”, the communication further says.

“All pending applications under section 14 of the above act filed by various banks and financial institutions where time limit of 60 days have already lapsed may be cleared within a week positively and a report in this behalf be shared with the finance Department so that the same is forwarded to the Department of Financial Services, Ministry of Finance, Govt of India.” the communication reads.

Meanwhile, Federation Chamber of Industries, Kashmir (FCIK) has expressed anguish over this latest development.

FCIK President Shahid Kamili in a statement to Ziraat Times said that the action is bound to erode the left out faith and confidence of the business community on government policies and commitments.

“This action is set to derail the revival of existing businesses and promotion of prospective entrepreneurship if such a program was seriously pursued by the government”, Mr Kamili added.