Govt. to table debt recovery Bill in LS today

The government is scheduled to move the Enforcement of Security Interest and Recovery of Debts Laws Amendment Bill 2016 in the Lok Sabha today.

The Bill seeks to strengthen the debt recovery laws to improve the ease of doing business in the country.

It seeks to amend four legislations - the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, the Recovery of Debts due to Banks and Financial Institutions Act, 1993, the Indian Stamp Act, 1899 and the Depositories Act, 1996.

The Bill was introduced in the Lok Sabha during last session and was referred to a Parliamentary Joint Committee.

The government has come up with this legislation at a time when there is mounting concerns over loan recovery.

The legislation proposes to give the RBI powers to regulate asset reconstruction companies, prioritise secured creditors in repayment of debts and provide stamp duty exemption on loans assigned by banks and financial institutions to asset reconstruction firms.