Telangana High Court for action on debt recovery panel-1 chief
The court went through the several orders passed by the officer in similar cases, by allowing to sale the agricultural lands for recovery.
Hyderabad: The High Court called for action against presiding officer of the Debt Recovery Tribunal-I at Hyderabad for repeatedly violating the law relating to auction of mortgaged agriculture land.
A division bench comprising Justice M.S. Ramachandra Rao and Justice K. Lakshman was dealing the pleas challenging the orders of the presiding officer in allowing financial institutions and banks to put on sale mortgaged cultivated lands. The bench observed that the presiding officer was biased to favour the bankers and was ignoring the provision of the SARFESAI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest) Act.
The bench directed the secretary to the Union ministry of finance, to take note of the observations of the court against the officer and take appropriate action for repeatedly ignoring infractions of this nature being committed by the financial institutions/banks.
The court went through the several orders passed by the officer in similar cases, by allowing to sale the agricultural lands for recovery of loan dues, contrary to the law. The bench observed that the presiding officer does not seem to be well-versed with the provisions of the SARFESAI Act and its rules.
“He seems to have an inherent bias in favour of the financial institutions/banks and prejudice against borrowers, and he is seeking to sustain every action of the financial institutions/banks, however bad the infraction of the law being committed by the financial institutions/banks,” the bench observed.
Section 31(i) of the Act, states that the bankers or financial institutions cannot put on sale mortgaged agricultural lands under the provisions of the Act.