Legal Remedies for Non-Performing Assets (NPAs) in India: An Assessment of Enforcement and Recovery Mechanisms
Lead author · Corresponding
Dr. D. Ch. Appa Rao
Lecturer in Commerce at SRR & CVR Govt Degree College(A), Vijayawada, AP, India
Co-author
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.
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