Summary:
In June, Pandey had attached properties worth Rs 3,770 crore where 176 cases were heard before the collector ordered confiscation of properties.“The district collector is hearing more than 400 cases of defaults involving property worth Rs 5,700 crore. On failure to do so, banks declare the loan an NPA and ask the collector to confiscate the properties under the Sarfaesi Act and auction it to recover the dues,” says the official. In most of these cases, borrowers failed to repay their loans. Decisions will be out in a short time,” said a senior district collectorate official.Pandey said, “The Sarfaesi Act gives the district magistrate power to first seize properties of loan defaulters at the request of banks, so an auction of these properties (residential and commercial) can be conducted. Such procedures help banks reduce non-performing assets (NPAs) and helps in their reconstruction,” says Pandey.A senior official at the collectorate told TOI, “If a borrower, defaults for six months at stretch, banks give them a two-month period to start repaying..