(a) whether recently the Supreme Court has given its verdict saying that the lenders
can now seize the assets of the bank loan defaulters but cannot sell them;
(b) if so, the details thereof;
(c) whether the verdict dilutes the interim gaining power of banks; and
(d) if so, the steps the Government propose to take in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) to (c) In a writ petition filed by M/s Amulet International Pvt. Ltd. challenging the
constitutional validity of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Second) Ordinance, 2002 (now repealed by Act), the
Supreme Court has passed an interim order that it would be open to the secured creditors
to proceed against the borrowers under sub clauses (2) & (4) of Clause 13 of the said
Ordinance. However, they shall not part with the assets of the borrower by way of lease,
assignment or sale. However, secured creditors still have the option to exercis.e their
rights through other provisions of the Ordinance.
(d) Matter is subjudice. Necessary legal steps care being taken.