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Changes Considered to SARFESI Act and DRT to Expedite Debt Recovery

On February 17, 2024, the Finance Ministry held a meeting to consider amendments to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002 and Debt Recover Tribunal (DRT) to ensure speedy debt recovery.

 

A decision was taken that banks and financial institutions must utilize the developing e-auction platform for listing and auctioning properties under different acts like the SARFAESI Act, 2002, Recovery of Debt and Bankruptcy (RDB) Act, 1993, and Insolvency and Bankruptcy Code (IBC), 2016.

 

Banks will conduct regular performance reviews of empaneled advocates at DRTs and adjust the cases assigned to them accordingly. Banks must ensure that their officers are present at all hearings of their respective cases before judicial forums.