In a major boost to the Cooperative banking sector, the Supreme Court of India has pronounced a judgment in its favor on the issue of securitization. The judgement created enthusiasm among the cooperators connected with the urban cooperative banks.
In its Judgment, SC allowed Cooperative Bank to take action against the borrower under Securitization Act-a provision availed by commercial banks so far only.
Noted lawyer Tushar Mehta, who represented the Cooperative sector is expected to give details of the judgement by the evening.
It is a long pending demand which has been fulfilled by the court, said NAFCUB President Jyotindra Mehta while talking to Indian Cooperative.
Meanwhile, sharing the good news Nafcub social media handle wrote on its facebook wall, “Supreme court pronounces judgment: Cooperative Banks are eligible to take action under Securitization Act, Details awaited”.
More than 160 cooperative banks had petitioned various courts in the country for their inclusion in the Securitization Act. These were clubbed by the Supreme Court which constituted a constitutional bench to hear the matter.
Earlier, Sahakar Bharati had also demanded government for inclusion of all Urban Co-op Banks under Securitization and Reconstruction of Financial Assets and Enforcement of Security.