Welcome to MITCON Consultancy

This Division was established in September 2002. The main objective of the Division is to assist the Banks and Financial Institutions in implementing the provisions of the new Act called 'Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002'. The Government felt the need for this legislation for giving more powers to the Banks and Financial Institutions for recovery of their dues from the NP Accounts outstanding in which had assumed serious proportions and the Banks were helpless because the then existing mechanism of recovery through Courts and even the Debt Recovery Tribunals was proving to be ineffective because of the large number of pending cases in these courts & tribunals. Further, the Banks / FIs were procedurally unaware and temperamentally not prepared to take such stringent measures and needed the services of competent outside agencies to help them implement the provisions of the Act to make an impact on the possession of their NPAs.

Broad Categories of Services Offered to assist the Banks / FIs in implementing the provisions of SARFAESI Act 2002 are as under

1.To carry out due diligence study of the Bank's record including documentation in respect of the properties charged and surveying the assets proposed for takeover from legal documentation, logistics and sales points of view. So far over 220 assignments have been carried out by the Division

2. To take possession (physical / symbolic) as an agent of the Authorized Officer, in accordance with the procedure laid down under the rules and assist the A.O. in preparing Panchanama / inventory of the property. as per the procedure and format prescribed. So far over 120 assignments have been carried out by the Division. So far over 40 compromise deals have taken place after the Division carried out Due Diligence Study.

3 To make application before the Hon'ble Dist. Magistrate / Chief Metropolitan Magistrate and obtain order for possession, if necessary i.e. in case there is any problem in taking over physical possession otherwise. So far over 15 applications have been submitted with the CMM or District Magistrayes at various districts in Maharashtra, M.P. Rajasthan.

4 To assist the Authorized Of the Bank/FI to issue various communications to the borrowers/guarantors /mortgagors under provisions of the act and rules framed thereunder and or to reply to the communications / notices received from the borrowers / guarantors, or on their behalf, from their advocates.

5 To arrange for sale of the assets as per any of the modes prescribed, receive sale proceeds, issue sale certificate and complete all other necessary formalities prescribed. This job includes drafting suitable advertisement (s), fixing Reserve Price in consultation with the Bank's Authorized Officials, preparing / finalizing tender documents, arranging inspections of the assets, receiving bids, scrutinizing the same, short-listing them, holding negotiations with the bidders, making suitable recommendations to the Bank, issuing sale certificates and completing the documentation. So far over 12 properties have been sold out and quite a few are under various stages of sale.

In addition, this Division carries out the following activities –

To investigate the background and assets of the borrowers / guarantors or their heirs. So far 12 assignments have been completed so far.
Preparation of Techno Economic Viability Studies for new projects, expansion, sick units rehabilitation / BIFR cases.
Valuation including business valuation and preparation of inventory of the properties.
Follow up of cases in DRT.

In addition, this Division carries out a number of diverse activities for the Banks / FIs / ARCs. Any service needed by the Banks / FIs / ARCs is procured and provided by this Division. This includes acting as Custodian of the assets taken in possession, arranging security for these assets, appointing Observers or Agents to run the plants taken in possession etc.