(a) Establishing Lok Adalats in all States. (b) To be made compulsory for both borrowers and banks for settlement of smaller loans (present limit 5. Lac)
(8)
BIFR (Board of Infrastructure and finance reconstruction ) (a) Relook into functioning of BIFR- whether objectives achieved since the ratio of cases registered and cases dismissed/winding up was only 49% in 1996. (b) Increase in number of benches-Housing separate benches for major cities like Mumbai, Chennai. (c) Time frame for rehabilitation (6 months). (d) Reference to BIFR should be prerogative of banks. (e) Prevent unscrupulous/dishonest promoters taking shelter under BIFR.
(9)
In the case of immovable property, recovery continues to be a problem even where the court decree of certificate has been passed. While the Act provides for attachment and sale of property after the court decree has been issued there is no provision to prevent a borrower from disposing off the property while the suit is still on. DRT Act empowers Recovery Officers to recover the debt through attachment and sale of movable or immovable property of the defendant but does not explicitly mention how to enforce hypothecation, mortgage, etc.
(10) There are instances where the borrower has mortgaged the same property to 58