JPC submits report on debt tribunal, SARFAESI law

JPC submits report on debt tribunal, SARFAESI law

FPJ BureauUpdated: Thursday, May 30, 2019, 01:57 PM IST
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New Delhi : The joint committee of Parliament, which is looking into amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, and the Recovery of Debts due to Financial Institutions (DRT), 1993, on Friday submitted its report, with a range of suggestions. To fill up vacancies at debt recovery tribunals, the panel suggested that the presiding officer of any other tribunal may function as presiding officer of the debt recovery tribunal.

It also proposed insertion of a new section to empower the Reserve Bank of India to audit and conduct inspection of asset reconstruction companies from time to time, reports Cogencis. “The committee are of the view that to carry on special forensic audit, Reserve Bank need to be empowered to entrust audit to any other specialised agency,” the report said.

In line with a FY17 Union Budget proposal, the committee proposed to make necessary amendments to the SARFAESI Act, 2002 to enable the sponsor of asset reconstruction companies to hold up to 100% stake in the asset reconstruction company, as well as allow non-institutional investors to invest in securitisation receipts.

The joint committee of Parliament, which has 30 members—20 from the Lok Sabha and 10 from the Rajya Sabha—is headed by Bharatiya Janata Party lawmaker Bhupendra Yadav. The government had referred the amendments to the joint committee of Parliament on May 11.

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