S.1 Short title and commencement

       (1) This Act may be called the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012.
       (2) It shall come into force on such 1date2 as the Central Government may, by notification in the Official Gazette, appoint:
       Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
       
       
       ______________________
       1. Effective from 15.01.2013 vide Notification No. SO171(E) dated 15.01.2013.
2. Effective from 15.05.2013 vide Notification No. SO1223(E) dated 15.05.2013

S.2 Amendment of section 2

       In section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(54 of 2002) (hereafter in this Chapter referred to as the principal Act), in clause (c), after sub-clause (iv), the following sub-clause shall be inserted, namely:--
       "(iva) a multi-State co-operative bank; or".

S.3 Amendment of section 5

       In section 5 of the principal Act, after sub-section (4), the following sub-section shall be inserted, namely:--
       "(5) On acquisition of financial assets under sub-section (1), the securitisation company or reconstruction company, may with the consent of the originator, file an application before the Debts Recovery Tribunal or the Appellate Tribunal or any court or other Authority for the purpose of substitution of its name in any pending suit, appeal or other proceedings and on receipt of such application, such Debts Recovery Tribunal or the Appellate Tribunal or court or Authority shall pass orders for the substitution of the securitisation company or reconstruction company in such pending suit, appeal or other proceedings.".

S.4 Amendment of section 9

       In section 9 of the principal Act, after clause (f), the following clause shall be inserted, namely:--
       "(g) to convert any portion of debt into shares of a borrower company:
       Provided that conversion of any part of debt into shares of a borrower company shall be deemed always to have been valid, as if the provisions of this clause were in force at all material times.".

S.5 Amendment of section 13

       In section 13 of the principal Act,--
       (a) in sub-section (3A), for the words "within one week", the words "within fifteen days" shall be substituted;
       (b) after sub-section (5), the following sub-sections shall be inserted, namely:--
       "(5A) Where the sale of an immovable property, for which a reserve price has been specified, has been postponed for want of a bid of an amount not less than such reserve price, it shall be lawful for any officer of the secured creditor, if so authorised by the secured creditor in this behalf, to bid for the immovable property on behalf of the secured creditor at any subsequent sale.
       (5B) Where the secured creditor, referred to in sub-section (5A) is declared to be the purchaser of the immovable property at any subsequent

S.6 Amendment of section 14

       In section 14 of the principal Act,--
       (a) in sub-section (1), the following provisos shall be inserted, namely:--
       "Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorised officer of the secured creditor, declaring that--
       (i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application;
       (ii) the borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period;
       (iii) the borrower has

S.7 Insertion of new section 18C

       After section 18B of the principal Act, the following section shall be inserted, namely:--
       "18C. Right to lodge a caveat.--
       (1) Where an application or an appeal is expected to be made or has been made under sub-section (1) of section 17 or section 17A or sub-section (1) of section 18 or section 18B, the secured creditor or any person claiming a right to appear before the Tribunal or the Court of District Judge or the Appellate Tribunal or the High Court, as the case may be, on the hearing of such application or appeal, may lodge a caveat in respect thereof.
       (2) Where a caveat has been lodged under sub-section (1),--
       (a) the secured creditor by whom the caveat has been lodged (hereafter in this section referred to as the caveator) shall serve notice

S.8 Amendment of section 23

       In section 23 of the principal Act, after the proviso, the following proviso shall be inserted, namely:--
       "Provided further that the Central Government may, by notification, require registration of all transactions of securitisation, or asset reconstruction or creation of security interest which are subsisting on or before the date of establishment of the Central Registry under sub-section (1) of section 20 within such period and on payment of such fees as may be prescribed.".
       

S.9 Insertion of new section 26A

       After section 26 of the principal Act, the following section shall be inserted, namely:--
       "26A. Rectification by Central Government in matters of registration, modification and satisfaction, etc.--
       (1) The Central Government, on being satisfied--
       (a) that the omission to file with the Registrar the particulars of any transaction of securitisation, asset reconstruction or security interest or modification or satisfaction of such transaction or; the omission or mis-statement of any particular with respect to any such transaction or modification or with respect to any satisfaction or other entry made in pursuance of section 23 or section 24 or section 25 of the principal Act was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of

S.10 Substitution of new section for section 30

       For section 30 of the principal Act, the following section shall be substituted, namely:--
       "30. Cognizance of offences.--
       (1) No court shall take cognizance of any offence punishable under section 27 in relation to non-compliance with the provisions of section 23, section 24 or section 25 or under section 28 or section 29 or any other provisions of the Act, except upon a complaint in writing made by an officer of the Central Registry or an officer of the Reserve Bank, generally or specially authorised in writing in this behalf by the Central Registrar or, as the case may be, the Reserve Bank.
       (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.".

S.11 Insertion of new section 31A

       After section 31 of the principal Act, the following section shall be inserted, namely:--
       "31 A. Power to exempt a class or classes of banks or financial institutions.--
       (1) The Central Government may, by notification in the public interest, direct that any of the provisions of this Act,--
       (a) shall not apply to such class or classes of banks or financial institutions; or
       (b) shall apply to the class or classes of banks or financial institutions with such exceptions, modifications and adaptations, as may be specified in the notification.
       (2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total

S.12 Amendment of section 2

       In the Recovery of Debts Due to Banks and Financial Institutions Act, 1993(51 of 1993), (hereafter in this Chapter referred to as the principal Act), in section 2, in clause (d), after sub-clause (v), the following sub-clause shall be inserted, namely:--
       "(vi) a multi-State co-operative bank;".

S.13 Amendment of section 15

       In section 15 of the principal Act, in sub-section (2), the following proviso shall be inserted, namely:--
       "Provided that the Central Government, during the pendency of the inquiry against the Presiding Officer or a Chairperson, as the case may be, may, after consulting the Chairperson of the Selection Committee constituted for selection of Presiding Officer or Chairperson, pass an order suspending the Presiding Officer or the Chairperson, if it is satisfied that he should cease to discharge his functions as a Presiding Officer or Chairperson, as the case may be."

S.14 Amendment of section 18

       In section 18 of the principal Act, the following proviso shall be inserted, namely:--
       "Provided that any proceedings in relation to the recovery of debts due to any multi-State co-operative bank pending before the date of commencement of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 under the Multi-State Co-operative Societies Act, 2002(39 of 2002) shall be continued and nothing contained in this section shall, after such commencement, apply to such proceedings.".

S.15 Amendment of section 19

       In section 19 of the principal Act,--
       (a) after sub-section (1), the following sub-sections shall be inserted, namely:--
       "(1A) Every bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of section 2, may, at its option, opt to initiate proceedings under the Multi-State Co-operative Societies Act, 2002(39 of 2002) to recover debts, whether due before or after the date of commencement of the Enforcement of the Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 from any person instead of making an application under this Chapter.
       (1B) In case, a bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of section 2 has filed an application under this Chapter and subsequently opts to withdraw the application for the purp

S.16 Amendment of section 31

       In section 31 of the principal Act, after the proviso, the following proviso shall be inserted, namely;--
       "Provided further that any recovery proceedings in relation to the recovery of debts due to any multi-State co-operative bank pending before the date of commencement of the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2012(39 of 2002) under the Multi-State Co-operative Societies Act, 2002, shall be continued and nothing contained in this section shall apply to such proceedings.".

S.17 Amendment of section 36

       In section 36 of the principal Act, in sub-section (2), after clause (c), the following clause shall be inserted, namely:--
       "(cc) the rate of fee to be refunded to the applicant under sub-section (3A) of section 19 of the Act".