Speaker P. Sreeramakrishnan has urged banks to halt recovery measures initiated on the strength of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, (SARFAESI Act) until a Kerala Assembly panel assigned to study its social impact submits its report.

At a press meet here on Wednesday, Mr Sreeramakrishnan said that the ad hoc panel was formed on December 18, 2018, under a unanimous decision of the ruling and Opposition dispensations in the House.

Headed by S. Sarma, the panel conducted its first sitting on January 4, 2019, in Thiruvananthapuram. On January 15, it held a hearing at the district collectorate, Ernakulam.

“The hearings in other districts could not be held after the model code of conduct for the Lok Sabha polls came into force. Banks should halt the inhuman evictions until the panel submits its report,” Mr. Sreeramakrishnan said.

As the SARFAESI Act was promulgated by the Centre, the State did face limitations in opposing it. But its social impact needed to be assessed, he added.