FASII writes to all nationalised banks regarding misuse of SARFAESI Act

Ludhiana, October 21, 2013: Federation of Associations of Small Industries of India (FASII) has written to all the nationalised banks regarding the alleged misuse of SARFAESI Act (Securitisation And Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002).
In a statement here on Monday, the FASII national president Badish Jindal has said the banks misuse the SARFAESI Act by publishing the pictures of the borrowers, their family members and guaranters along with the advertisement of auction of their property. This is mostly in the cases of MSME Sector recoveries. Whereas the large units and agriculture sector are treated nicely by the banks, he claimed.
He added in a recent judgment of Calcutta High Court the Court has ordered the banks not to publish the pictures of the borrowers along with the auction notice as court felt that SARFAESI Act does not provide such powers to the banks.
Jindal said as per official data the total NPA of India's banks is 176,000 crore upto June 2013, in this the NPA of MSE's is just Rs. 6,500 crores, the NPA of agriculture sector is Rs. 11,000 crores whereas the large companies are holding more than Rs. 160,000 crores of the banks as NPA.
He said this shows the good picture of MSE's as 95% of the industrial sector is having just 3 to 4% of the total bad debit of the banks whereas 5% of the large sector is having 90% of the banks bad debit. And interestingly the bad debits of large sectors had increased doubled in last four years.
Jindal said in regard to increasing NPA of nationalised banks a petition in Rajya Sabha is filed by the MP Rajya Sabha Avinash Pandey on 9th of October 2013, which is accepted by the Rajya Sabha. As per this petition strong steps will be advised to the banks to curb the increasing NPA.
“FASII has urged the Rajya Sabha that the MSE's should be kept away from these amendments as the bad debits of MSE's are merely Rs. 6,500 crores”, he added. www.cityairnews.com