Addressing the AGM of NAFCUB in Delhi, Nainital based Kurmanchal Nagar Sahkari Bank director Govind Ram Raturi advocated the use of the SARFAESI Act 2002 to ensure recovery of NPAs.
Raturi said “As you are well aware that the SARFAESI Act is an effective instrument for recovery of NPAs, but the high court of Uttarakhand has not allowed the bank to proceed with recovery via SARFAESI and have asked us to proceed via section 70 and 71 of the Uttaranchal Cooperative Societies act 2003.
We had given a copy of the petition to NAFCUB CEO Subash Gupta so many times in the past but Nafcub never paid heed to our request, lamented the Bank Chairman Vinay Sah on phone.
The Bank chairman Vinay Sah could not attend the event due to his preoccupations.
Talking to this correspondent Raturi said” this is a regressive step which needs immediate addressing by the
In his remarks, NAFCUB CEO Subash Gupta said ”the SARFAESI Act is pending in Supreme Court and on behalf of Urban Cooperative Banks we have met Union Finance Minister to look into the matter”
Its bears recall that two years back the Sahakar Bharati delegation met Union Finance Minister Arun Jaitley and demanded that all UCBs be recognized as banking organizations under the SARFAESI Act and as lending institutions under the Credit Guarantee Fund Scheme.
Kurmanchal Nagar Sahkari Bank was established in 1983 and is the leading Urban Cooperative Bank of Uttarakhand having a network of 41 branches. The bank claims deposits worth Rs 1500 crore and disburses loans tallying Rs 700 crore. Over 25,000 members are associated with it.
The bank has 24 on site ATMs and earned a profit of about Rs 14 crore in the last financial year, said bank Chairman Vinay Sah. His father Late Madan Lal Sah was the founder of the bank.