Banks to secure the forcible dispossession of the very residential homes of borrowers covered under the Small and Medium Enterprises Act.*

*Press Release*

*The Hon'ble the CJI has been gracious enough to grant the plea of Sri Nedumpara for the emergent hearing of a WP by one Sri Santhosh Nayak challenging the validity of the SARFAESI Act in so far as it empowers the Banks to secure the forcible dispossession of the very residential homes of borrowers covered under the  Small and Medium Enterprises Act.*

*Sri Nedumpara had to seek the leave of Hon'ble CJI which His Lordship was pleased to graciously grant to mention the WP of Sri. Nayak which had to be instituted in view of the dispossession of Shri Nayaks home tomorrow at 11 am.*
 
*The plea of Sri. Nedumpara is that the SARFAESI Act is no draconian enactment in so far as the big borrowers who defraud the Bank by availing of thousands of Crores of rupes like Mallays, Nirav Modis without offering any collateral security are concerned, in stark contrast to its effect against the small time entrepreneurs who offer securities far in excess of the loan availed of, namely, even their only residential homes, which are forcibly dispossessed of, without affording them the care and nursing which they are entitled in terms of the MSME Act.*

*The MSMEs are the real backbone of our economy in the sense that, without them the big industries cannot exist. The MSMEs provide for more than 60% of the total employment. The merciless action of the Banks under the SARFAESI Act has led almost 40% of all MSME units die out of sickness without being extended the care and nursing the MSME Act provides for.*

*The above case is listed for hearing before the CJI in the supplementary Board.*

*New Delhi*
*5 March 2018*

A C Philip, Advocate