PANAJI: The Union ministry of finance wrote to the state government expressing “serious concern” that efforts to recover dues from loan defaulters have been thwarted as the government is stalling the process.
The ministry wrote to chief secretary Parimal Rai and asked him to ensure that the district collectors in Goa support the efforts to recover dues from defaulters by clearing pending files within 60 days.
According to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, district magistrates have to grant approvals within 60 days when banks and financial institutions seek assistance to take physical possession of mortgaged properties.
“It is a matter of serious concern that despite the time limit prescribed in the Act, applications from banks and financial institutions often remain pending with district magistrates for more than 60 days,” said the finance ministry’s additional secretary, Dakshita Das, in the letter to Rai.
According to the ministry’s department of financial services, there are 32 recovery cases pending in Goa to the tune of Rs 57.5 crore.
The department of financial services has sent a district-wise list of pending applications to the state government. The data involves default cases with public sector banks that are pending for more than 60 days as on September 30 in Goa.
“It is requested that all district magistrates in your state may kindly be asked to support the efforts of banks or financial institutions to recover dues from defaulters and clear all the pending applications under section 14 of the Sarfaesi Act well within the prescribed period of 60 days,” said Das.
Das has also mailed a copy of the letter to the State Level Banker’s Committee and banks so that they can to pursue the matter with the district collectors.