Cabinet meeting gives nod to amend revenue recovery law to tackle confiscation torment from banks

THIRUVANANTHAPURAM: The cabinet meeting approved the bill to amend the Kerala Revenue Recovery Act, 1968 to prevent people from being tortured and forced to commit suicide due to confiscation proceedings. The aim is to prevent confiscation of houses and agricultural land, including those belonging to small farmers. Allowing more installments to repay the loan dues will also be considered.

The major amendments are reduction of interest on tax arrears, publication of sale information of foreclosed property online, provision for sale of part of land acquired by the government to clear the arrears liability, allowing the government to grant installments in revenue recovery etc.

Lands are auctioned off upon defaulting on loans, including from government institutions and government-controlled financial institutions. If no one buys it, the government will take it over. In this way, there will be a provision to simplify the process of making the land acquired as boat-in-land available to the owners themselves. The bill was prepared on the basis of the report given by the four-member expert committee headed by the Revenue Recovery Assistant Commissioner.

No private agency for confiscation

1. Agricultural land up to one acre in rural areas and half an acre in urban areas will be exempted from confiscation for loan arrears up to Rs 5 lakhs.

2. If the borrower's house is less than one thousand square feet, no foreclosure clause will be included.

3. Entrustment of confiscation to private agencies shall be prohibited

4. Provisions may be considered for countering Centre's SARFAESI Act