SBI Hires Detectives to Trace Defaulters’ Properties
As a result of the delayed recovery of loans and inability to track defaulters, SBI has turned snoop by hiring detectives to track down errant borrowers. Their properties, once traced shall be advertised for sale.
Due to the pressure of having to recover its debited money, the State Bank of India has contacted several small-time detective agencies with the help of which they plan to track down property owned by borrowers who have failed to repay their loans. The property which will be traced using these detectives will then be advertised on a website for sale, as reported by PK Malhotra, the Deputy Managing Director of the country’s largest lending organisation.
Local detective agencies have been contacted based 5 major cities across India including Mumbai, Chennai, New Delhi, Kolkata and Bengaluru to locate all properties that have remained undisclosed to the bank – as has been explained by Malhotra.
Reasons cited:
- Delay in repayment of loans and frustration in failing to contact defaulters.
- Delay in court proceedings caused by the defaulter themselves.
- Debt recovery cases of the State Bank of India is filed under the DRT or Debt Recovery Tribunals that presides over these issues and help in recovering dues. Borrowers however are often let off on unworthy grounds and this in turn leads to a further delay in the recovery process.
- Disputes filed with the DRT has been estimated to be over Rs.1 lakh crore and delayed processes only adding to the costs incurred.
- Evidence of properties attached with defaulters is demanded at court proceedings which the SBI feels can be brought forth with the help of detectives. The DRT can then be appealed for approval of taking possession of the properties attached.
In failing to contact defaulters and recover its lending, SBI claims that hiring detective agencies for tracking down the whereabouts of the defaulters and the real estate owned by them might prove to be more beneficial that waiting court proceedings.
Selling plans: The bank has already stated its plans for advertising the properties traced down for sale on websites. The ‘attachment before judgement’ clause of the Indian Civil Procedure Court shall be applicable for the case that can enable the bank to receive a decree from the DRT to sell the property through e-auction on the proposed website.
Source: Financial Express
