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We feel that the corporation is using Sec.29 for recovering loans unjudiciously. Is it true ?

April 26, 2017corporation feel Loans recovering

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We feel that the corporation is using Sec.29 for recovering loans unjudiciously. Is it true ?

1 Answer

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It is not correct. Powers U/S 29 are exercised after exhausting all other avenues to recover the dues. If the borrower is not able to pay the dues for the reasons beyond his control we do allow considerable time for repayment. However, if we feel that the account became sticky and downgraded and does not have potential for revival, then we resort to the action U/S 29 of SFCs Act.