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The Bombay High Court has held that lender bank registration with the Central Registry of Securitisation and Security Interest of India (CERSAI) has first priority over Deputy Commissioner of Sales...
This follows a decision by the Bombay High Court earlier this week that said public sector banks (PSBs) dont have the power to recommend, or ask, the central government for the issuance of LOCs against defaulting borrowers.
PSU Bad bank, ARC reforms are awaited as NPA threat looms : Rashtra News #PSU #Bad #bank #ARC #reforms #awaited #NPA #threat #looms Even as the wait goes on for the National Asset Reconstruction Company (NARC), or 'bad bank', which was announced in the previous Union Budget and proposed reforms for the private asset reconstruction
Many laws governing the banking industry have also evolved to accommodate rapid changes that are driving innovation at breakneck speed. However, some attitudes among bankers and regulators have lagged behind, and don't reflect the digital age. One such laggard is the 'wilful defaulter' label. This classification is unique to India among all big economies, and it defies logic in the era of data analytics and AI. A wilful defaulter is a borrower with enough money but isn't repaying banks. The dubious category also includes those that siphoned funds and left businesses high and dry.
The court reiterated that SARAESI Act has an overriding effect, and dues of secured creditor have priority over other dues.