New Delhi, Mar 3 : Farmers in large numbers participated in a crawling march in New Delhi to protest against the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (SARFAESI) Act, 2002 that empowers banks to dispose of defaulters' securities to recover dues.
Farmers who came to Delhi from Kerala on February 23 to launch this protest complain that banks are taking over homestead property by using the centrally enacted SARFAESI Act.
"The Parliament should amend this act. Not only Kerala, all over India, this act is being used without discretion by banks. Nobody is questioning that," said John, Convener, Shelter Protection Committee.
The SARDFAESI Act empowers banks or financial Institutions to recover their non-performing assets without the intervention of the courts.
The act provides three alternative methods for recovery of non-performing assets, namely securitization, asset reconstruction and enforcement of security without the intervention of the courts.
The act brings in an element of non-conventional battle against Non Performing Assets (NPA), as it empowers banks to dispose of defaulters' securities to recover the dues.
The Sarfaesi Act came into existence in 2002 as a fallout of the balance of payments crisis in the 1990s and the recommendations of the Narasimham committee on banking reforms.