Can the borrower have any say in the transfer of NPLs to ARCs?
A. Under the Securtisation Act, 2002 an ARC can acquire the NPLs from any bank or FI in India. The borrower, pertaining to whom the NPLs is acquired by an ARC cannot oppose this move of the banks / FIs. However, the banks / FIs, if considered appropriate, may give a notice of sale / transfer of NPLs to the concerned borrower.
- If an ARC acquires 75 per cent of the secured debt of a borrower, what are the options available to the lenders who have not transferred their debt to the ARCs?
- Do the lenders need to take any action against the borrower under the SRFAESI Act, 2002 or otherwise prior to transfer to ARC?
- When may a mortgage broker transfer excess funds from a borrower subaccount?