SC upholds changes in Sarfaesi Act; banks free to decide NPAs

Supreme Court on Wednesday after dismissing appeals filed by around 60 companies upheld the amendment to the Securitisation Act that gave power to every financial institution to decide a period after which a bad loan can be declared as a non-performing asset (NPA).Before the 2004 amendment to the Securitisation Act and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (Sarfaesi Act), RBI was the regulator for the banking, non-banking and securitisation institutions for deciding the period after which loans could be treated as NPA.

← Vodafone India Services Pvt. Ltd. Versus Union of India, Addl. Commissioner of Income Tax, Dy. Commissioner of Income Tax – 2014 (10) TMI 278 – BOMBAY HIGH COURT – Income Tax
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