Srinagar, Dec 04: The administration of Jammu & Kashmir Union Territory has directed the district magistrates to clear all pending applications filed by banks and financial institutions for taking over physical possessions of mortgaged properties of defaulting borrow within a week’s time.

In a communique, Financial Commissioner Finance Arun Mehta has written to all district magistrates of the UT to dispose all pending applications filed under section 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 within a week’s time.

“All pending applications under section 14 of SARFEASI Act filed by various banks and financial institutions where time- limit of 60 days have already lapsed may be cleared within a week positively and a report in this ben shared with Finance Department so that the same is forwarded to the Department of Financial Service, Ministry of Finance, Government of India,” reads the letter.

The move comes after Centre intimated that applications filed under section 14 of the Act remain pending with district magistrates for more than 60 days.

The district-wise list of pending applications forward by the Union Finance Ministry as on 30-09-2020 has also been enclosed with the communique.

Under SARFAESI law, applications filed by the banks and financial institutions with the district magistrates for taking over physical possessions of mortgaged properties of defaulting borrowers are required are to be disposed within 60 days.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act was enacted in 2002. It allows banks and other financial institution to auction residential or commercial properties of defaulters to recover loans—(KNO)