Finance corporation told to return assets
The Gauhati High Court has directed the North Eastern Development Finance Corporation to restore possession of all immovable properties to Doulo Builders as the securitisation (SARFAESI) Act was wrongly applied to recover unpaid loans. The builders had taken two loans from the corporation to build cold storage in Dimapur. The loan was taken by mortgaging assets to the Model Village Council, which stood as surety. The loan became a non-performing asset. The corporation invoked the SARFAESI Act and the property of the builders was taken over. This was challenged by the builders on the ground