Finmin Tells Banks To Dispose Of Defaulter Assets

The finance ministry, after consulting the law ministry, has indicated to banks and financial institutions that they can go ahead and sell assets of defaulting borrowers as the Supreme Court (SC) order restraining ICICI from disposing of assets of Mardia Chemicals pertains only this particular borrower.

The ministry is of the view that the SC order in the Mardia Chemicals Vs ICICI does not preclude banks from recovering their dues by resorting to sale of defaulters assets.

Despite this assurance, banks and financial institutions are chary about selling off the assets they have taken possession of for fear of being drawn into litigation by recalcitrant borrowers.