Loan defaulters to face action soon

Greater Noida: The district administration has started initiating action against 24 defaulters, including companies that have borrowed crores of rupees from various banks, by mortgaging properties in Noida but didn't repay. The action has been initiated under Sarfaesi Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act).
"There are defaulters who had borrowed loans ranging from Rs 10 lakh to Rs 136 crore but did not repay," said additional district magistrate (finance and revenue), Rajesh Yadav.
"The SSP and sub divisional magistrate will ensure the compliance of the order under Sarfaesi Act to take possession of the secured assets of the borrower, including transfer by way of lease, assignment or sale, for realizing the secured assets," he added.
"The Sarfaesi Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal," said Yadav. These defaulters had taken huge amount of loans from various financial institutions including PNB Housing Finance, ICICI Home Finance, Punjab and Sindh Bank, SBI, Ratnakar Bank, Bank of Maharashtra etc, he said.
When asked why action has been initiated in GB Nagar though loans were taken from various branches in the country, Yadav said: "The borrowers had mortgaged properties based in Noida. So technically, GB Nagar district administration has to take call on it," he said.