SARFAESI Viruddha Samiti, an organisation set up to fight against the auctioning of residential or commercial properties by banks under the the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act), is planning to hold a Kozhikode district-level convention on June 1.

Banks and other financial organisations auction the properties when customers default on their loans. Moidu Kannankotan, coordinator of the samiti, told the media here on Thursday that the government should bring in amendment to the Act to exclude auction of residential properties. He said that though the Act was passed in 2005, banks had started using its provisions only recently. Both cooperative banks and new generation banks were found to be harassing defaulters.

He pointed out that the experience of Cheeluparambath Nanu of Mullambath near Kuttiady, who had borrowed ₹3 lakh as home loan from a cooperative bank, was a case in point. Though the Minister for Cooperation had directed the bank authorities to reduce the amount to be repaid by Mr. Nanu, they did not oblige. The bank authorities reportedly claimed that courts could not intervene in the issue as it came under the SARFAESI Act.

Mr. Moidu said that representatives of various farmers’ organisations would be present at the convention. A march would soon be taken out to the office of the joint registrar of the Cooperation Department, he said.