Banks may get power to auction ships in case of loan defaults
shipping vessels, with the government considering removing special exemption for fishing vessels under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, said people familiar with the matter.
The government is also reviewing other provisions of the law to fast-track the recovery process, said an official.
«We are in discussion with stakeholders on various aspects of the SARFAESI Act. One of them is to amend the Act for shipping vessels,» the official said.
Under section 31(d) of the Act, 2002, banks cannot create security interest in any vessel, as defined in clause (55) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958). The amendment would allow lenders to auction ships in case of loan defaults.
A senior bank executive said lenders have pitched for these changes in the Act to remove ambiguities. «There have been cases where borrowers moved the courts, seeking adjournment and delaying the recovery process on the grounds of these exceptions. We have to pursue a separate strategy for loan recoveries in such cases,» he said on condition of anonymity.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrow's Innovations
By — Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By — Metla Sudha Sekhar,
