Wednesday, June 15, 2016

FM introduces Bill to fast track recovery of bad loans

In a move to expedite the process of resolving the debt issues burdening the creditors including banks and financial institutions, Finance Minister introduced the Enforcement of Security Interest and Recovery of Debt Laws and Miscellaneous Provisions (Amendment) Bill, 2016.

Key Provisions:-

  • R.B.I to regulate asset reconstruction companies.
  • Priority to secured creditors in repayment of debt
  • Stamp duty exemption on loans taken over by ARCs from banks, FIs.
  • Central registry of property rights.
  • Online filing and uploading of rulings by DRTs
  • Automatic transfer of assets by defendant by the DRT.
  • Period of filing appeals cut down to 30 days.

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