THIRUVANANTHAPURAM: The Assembly has constituted a 11-member committee to study the impact of Sarfaesi Act in the state.
The committee will examine the scenario precipitated by the implementation of the Act across the state and will submit its report within six months.
Announcing the committee, Speaker P Sreeramakrishnan said thousands of people in the state were facing attachment of their houses and properties under Sarfaesi. It was introduced in 2002 and under the act, the banks or other financial institutions can auction residential or commercial properties of defaulters to recover loans.
The Assembly in 2017 had passed a resolution seeking exemption of certain clauses of the act in case of those who pledge property and houses on less than five cents as security. The resolution was sent to the Central Government for further action.
The members of the committee are: E S Bijimol, Monce Joseph, M Pradeepkumar, Thiruvanchoor Radhakrishnan, S Sharma, C K Saseendran, V D Satheesan, K Suresh Kurupp, M Ummer and N Vijayan Pillai.