10POINTER- Recently, Banks have invoked the Sarfaesi Act against telecom infrastructure provider GTL to recover their pending dues.
What is the Sarfaesi Act?
The Sarfaesi Act of 2002 was brought in to guard financial institutions against loan defaulters.
To recover their bad debts, the banks under this law can take control of securities pledged against the loan, manage or sell them to recover dues without court intervention.
The law is applicable throughout the country and covers all assets, movable or immovable, promised as security to the lender.