Debt Recovery Tribunals In India: A Short Note
Author(s) Manasi Phadnis, Nagpurnanand Prabhala


This is a brief discussion of the origins and functioning of the Indian credit recovery infrastructure. India’s 1985 SICA Act put in place a debtor friendly regime in which defaulting borrowers could delay resolution for long periods of time and strip assets of value. The debt recovery tribunals in the 1990s attempt to create a more creditor friendly regime but their effectiveness is limited by restrictions on their scope. The SARFAESI Act, enacted in 2002, permits seizure of secured assets and has been the most effective means of recovery. A number of interesting research and policy-relevant questions arise but research is impeded by the lack of organized records friendly to research.

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