Thane: Collector Cracks Down On Loan Defaulters, Properties Worth ₹300 Crore To Be Seized For Recovery

Thane Collector Ashok Shingare has issued orders to initiate action against 300 residents who have allegedly defaulted on bank loans obtained for purchasing immovable properties. The Thane revenue department will attach the properties, collectively valued at over ₹300 crore, which were used as collateral for the loans. These properties will then be handed over to the respective lending institutions to facilitate the recovery of the outstanding amounts.

In a statement to a correspondent from FPJ, Ashok Shingare explained that the action is being taken in accordance with the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. Under this act, lending institutions such as banks approach the revenue department to initiate the attachment of properties belonging to housing loan defaulters in order to recover the outstanding loan amounts classified as non-performing assets (NPA). The seized properties are subsequently auctioned off by the lenders to settle their bad loans.

Dinesh Paithankar, Nayab Tehsildar, and Yuvraj Bangar, Tehsildar, have been entrusted with the task of executing the orders. They are currently in the process of compiling a comprehensive list of borrowers primarily from Thane district, including Thane city and Navi Mumbai, as per the instructions from the Collector. Paithankar and Bangar further revealed that a significant number of applications were received last year and have now reached the stage of execution.

The SARFAESI Act

Paithankar explained, "The act primarily encompasses loans obtained for the acquisition of immovable properties, including residential, commercial, and industrial properties. When borrowers default on their EMI payments for a specified period, financial institutions classify the account as a non-performing asset (NPA). After unsuccessful attempts at recovery, the bank's recovery department approaches the district collector, who delegates the authority to the sub-divisional magistrate. With the necessary legal empowerment, the sub-divisional magistrate orders the seizure process, which is carried out under police supervision."

Shingare stated, "The number of defaulters typically varies by the time the orders are ready for execution, as certain cases may get resolved through mutual agreement or debtors may obtain stay orders from the High Court."