Debt Recovery Law

No phone calls to borrowers before 8 am and after 7 pm; 'no intrusion of privacy'

The lead bank of the consortium has to issue notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI).

The government hopes recent amendments in loan recovery laws will help hasten the disposal of over 70,000 pending cases involving more than Rs 5 lakh crore in non-performing assets and ease the crippling situation of toxic loans, senior officials said on Thursday.The amendment law, which received presidential assent on Tuesday, sets a time limit for disposal of debt recovery cases and seeks to improve ease of doing business by ensuring speedier resolution of defaulted loans.The highlights of the Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Act, 2016 are expansion of definition of security interest, inclusion of debenture trustees and strengthening of asset reconstruction companies."The recovery process has been eased, which will help shrink the time for recovering bad assets," an official said.

It seeks to amend four laws; govt hopes to table the revised Bill in the ongoing session

The bill seeks to expedite 70,000 cases pending in Debt Recovery Tribunals