Property Act: Opposition to SC ruling 'misplaced', says J&K finance minister Drabu

Terming the opposition to SC ruling on the SARFAESI Act with respect to Jammu and Kashmir as "completely misplaced", state Finance Minister Haseeb Drabu on Saturday said the apex court has only reaffirmed that the state laws prevail.

"I think we will have a lot of occasion to discuss this in the Assembly, but I think it (opposition to the SC ruling) is completely misplaced... the Opposition has been doing this for very very long."

While speaking at a Jammu and Kashmir Bank event here, Drabu told reporters that "there is nothing in the Act (to be opposed). In fact, it reaffirms quite a few things, one of which is that the Transfer of Property Act actually prevails over SARFAESI (the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act)".
According to him, banks cannot sell any immovable mortgaged property to non-state subjects.

"In the event of a bank taking recourse to property, they cannot sell it to a non-state subject and in the last budget, I had already made a provision for an asset recovery company with the J-K Bank which can buy these impaired assets," he said.

"So, I think the Opposition is completely clueless in what they are saying and bears no relation to what the Act has and it is not today, this has been going on since 2003," he claimed.
Referring to his stint in the bank as its chairman, he recalled making some pertinent proposals.

"But I think what eventually has happened is we have got clarity on it that the Transfer of Property Act of J-K will actually prevail over this (SARFAESI) and you cannot sell any immovable mortgage property to non-state subjects." It can be a huge business opportunity for J-K bank, he felt.

Asked if the state would bring any other law on the issue, he said the law department will have to discuss the same.