The Kerala Government will soon bring an amendment to the revenue recovery legislation authorising officials from Tahsildar rank up to the Ministers to let the defaulters pay the pending dues in instalments and to stay the revenue recovery proceedings against the defaulters.
Amendment was mooted earlier also in the context of the courts reiterating that there is no authority at the administrative level to allow a stay of recovery action or to let the defaulter pay in instalments. Finally, the legislation to amend the act has become indispensable when the appeal filed by the State also went futile. The banks notified as per the Revenue Recovery Act to recover the loan dues are seeking the Government’s help in the recovery proceedings.
So far, actions in this regard were initiated based on the Government Order (GO) authorising the Tahsildar, Collector, Ministers and the Chief Minister to let the defaulters pay the dues in instalments. However, as there is no provision for the same as per the Kerala Revenue Recovery Act the State has faced setbacks in the High Court since 2019 over related interventions. The drafting of the bill to amend the law is in the last stage.
As per the law, the Government can recover loan defaults of up to Rs 20 lakh. For those above Rs 20 lakh, action has to be taken through the Debt Recovery Tribunal according to the norms. Paupers seek the Government’s help in preventing recovery proceedings. Considering the protests and suicides in the name of debt recovery proceedings, the Government has intervened many a time.
