Thiruvananthapuram: Starting now, if a defaulter manages to clear their debts within a set timeframe, they can reclaim their confiscated properties by submitting an application. Amendments will be made to the Kerala Revenue Recovery Law to facilitate this process. Additional clauses will be incorporated to minimize property attachments whenever feasible.

Typically, seized items are auctioned off by the bank. In the event of no buyers, a minimum amount will be deposited, and the land will be transferred to the government's ownership. As per existing rules, such lands can only be used after a specific timeframe, but these rules are poised for an overhaul.

As per the changes that are being proposed, an individual will be provided with an opportunity to reclaim his lost property. Hence, the banks will be blocked from selling the land confiscated by them until a certain time, so that people may clear their debts and buy back their lost properties. 

Setting a deadline for reclaiming confiscated properties is expected to make things hassle-free for the government as well.

Ultimate authority rests with the government

The government had earlier issued an order asking the banks to allow their borrowers to pay back their loans in 10 instalments. Many financial institutions were adhering to these regulations, However, such moves to prolong seizure of properties was questioned by a private bank at the High Court.

In response, the court asked the government not to interfere in confiscation matters. Following this, the government has been refraining from interfering concerning nationalised and private banks. They have only been governing matters concerned with the cooperative banks.

As per the proposed changes, the Revenue Minister, Finance Minister and the Chief Minister will have powers to prolong confiscation in instances of payment defaults of up to Rs 5 lakhs, Rs 10 lakhs and Rs 20 lakhs respectively.        

The amendments will allow the government to interfere in the realms of the nationalised, scheduled and commercial banks. However, it won’t give powers to influence confiscations under the SARFAESI Act.