ISSN 2581-5369
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Legal Remedies for Non-Performing Assets (NPAs) in India: An Assessment of Enforcement and Recovery Mechanisms
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Dr. D. Ch. Appa Rao
Lecturer in Commerce at SRR & CVR Govt Degree College(A), Vijayawada, AP, India
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Dr. Achyuta Rama Kishore Olety
Lecturer in Commerce at SRR & CVR Govt Degree College(A), Vijayawada, AP, India
Abstract
Non-Performing Assets (NPAs) remain a critical challenge in India’s banking sector, affecting credit flow, profitability, and financial stability. This paper assesses the effectiveness of legal remedies such as the SARFAESI Act, Debt Recovery Tribunals (DRTs), Insolvency and Bankruptcy Code (IBC), Lok Adalats, and Asset Reconstruction Companies (ARCs) in resolving NPAs. It also examines enforcement challenges, sector-specific issues, and the role of regulatory bodies like the RBI and Government of India. The study highlights the need for judicial reforms, inter-creditor coordination, and institutional strengthening to improve recovery outcomes and ensure a more robust, efficient, and accountable financial ecosystem.
Keywords
- Non-Performing Assets
- SARFAESI Act
- Insolvency and Bankruptcy Code (IBC)
- Debt Recovery Tribunal (DRT)
- Asset Reconstruction Companies (ARCs)
- Lok Adalats
- Legal Remedies
- Banking Sector
- NPA Resolution
- Financial Enforcement.
Type
Research Paper
Information
International Journal of Law Management and Humanities, Volume 8, Issue 4, Page 2140 - 2150
DOI: https://doij.org/10.10000/IJLMH.1110660Creative Commons
This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.
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