Letter to BS: There is resentment over blanket application of SARFAESI Act

There is widespread resentment over the blanket application of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. No one has any complaint against financial institutions using this Act to proceed against wilful defaulters and industrialists who have diverted bank funds. But people are against the heavy-handed approach against thousands of small house owners who have defaulted repayments due to circumstances beyond their control. Millions of people, belonging to the vulnerable section, have purchased houses using loans but are unable to repay their equated monthly installments. Financial institutions are taking possession of their small houses and flats to recover their money, and bring down the percentage of non-performing assets. These people are being forced out of their homes and have nowhere to go except the streets. 

There are thousands who cannot repay their loans because of closure of factories, or because they are affected by critical illness and are unable to go to work, or because they have lost their means of livelihood due to natural disasters. These are situations where the loss of wages is due to factors much beyond their control, and these people do have any place to go or any appellate authority who would understand their problems.

Biju Cherian, Mumbai

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