Tag: debt recovery tribunal

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Bombay HC Overturns DRT Stay on Bank-Auctioned Flat Sale

MUMBAI: The Bombay High Court recently overturned a Debt Recovery Tribunal (DRT) order that halted further post-sale actions regarding a bank’s auction of a flat in South Mumbai. The Court noted a “disturbing trend” where borrowers and “chronic defaulters” often act passively while banks pursue recovery. These defaulters typically invoke “collusive proceedings” under insolvency laws only when it’s time for auction purchasers to take physical possession of the property. In a ruling dated March 18, Justices Manish Pitale and Shreeram Shirsat expressed concern over the misuse of the Insolvency and Bankruptcy Code (IBC). They pointed out that borrowers often claim…

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AIPL Acquires Gurugram Land for ₹1,000 Crore via Tribunal

Representative image Gurugram-based real estate developer AIPL has acquired a 43-acre site for ₹1,000 crore via the Debt Recovery Tribunal (DRT), enabling six banks to exit, according to a senior executive. This purchase is part of an 80-acre parcel in Sector 103 along the Dwarka Expressway in Gurugram. AIPL plans to expand its land bank by an additional 20 acres. “We aimed to undertake a township project, but securing large land parcels in a city like Gurugram is challenging,” stated Daljeet Singh, Managing Director of AIPL. “We anticipated difficulties in resolving numerous land-related issues, yet this also presents us with…

Latest StoriesRegulatory

SC: Borrowers Lose Property Redemption Post Auction Notice Under SARFAESI

NEW DELHI: On Monday, the Supreme Court ruled that borrowers cannot reclaim property post-publication of an auction notice, as purchasers gain indefeasible rights once a sale certificate is granted by creditor banks and financial institutions under the SARFAESI Act. A bench comprised of Justices J B Pardiwala and R Mahadevan expressed concern about ambiguities in Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), which was enacted in 2002 for the protection of banks and financial institutions, noting that these ambiguities have led to prolonged litigations. The Court clarified that the…