News items on 11th Dec 2012 say that the Enforcement of Security Interests and Debt Recovery Laws Amendment Bill has been cleared by the Lok Sabha.
The Bill is insignificant, and makes minimum amendments to the SARFAESI Act.
One amendment, for example, relates to multi-state cooperatives, which, owing to certain court rulings, were currently excluded from the purview of the law.
Yet another amendment is the right of a secured creditor to file a caveat before DRTs, so that borrowers do not obtain ex parte stay.
Yet another amendment allows an ARC to convert debt into equity.
Text of the Bill is here: http://www.prsindia.org/uploads/media/Enforcement/Enforcement%20of%20Security%20Interest%20and%20Recovery%20of%20Debts%20Laws%20Amendment)%20Bill%202011.pdf
The Bill is insignificant, and makes minimum amendments to the SARFAESI Act.
One amendment, for example, relates to multi-state cooperatives, which, owing to certain court rulings, were currently excluded from the purview of the law.
Yet another amendment is the right of a secured creditor to file a caveat before DRTs, so that borrowers do not obtain ex parte stay.
Yet another amendment allows an ARC to convert debt into equity.
Text of the Bill is here: http://www.prsindia.org/uploads/media/Enforcement/Enforcement%20of%20Security%20Interest%20and%20Recovery%20of%20Debts%20Laws%20Amendment)%20Bill%202011.pdf
