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Articles on Asset Reconstruction SARFAESI

 

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If you are aware of any Court ruling/ proceeding in the matter, you are welcome to contribute

 

My Column by Vinod Kothari:

Stamp duty on assignment of receivables-

Some people seem to have taken the view that with the ordinance provides for a process of legal vesting of loans into the securitisation company and therefore, the stamp duty implications of transfer of actionable claims are dispensed with.

Most respectfully, this is not a correct view. True, there is a vesting of the loans into the securitisation company/ ARC, but such vestnig is only the outcome of the agreement, which is true for any conveyance or sale. The only difference between sec. 5 of the Ordinance and sec. 130 of the TP Act is that a written agreement is not required under the former section. But if the parties choose to have a written agreement, the same is certainly a conveyance, and would come for stamping.

Should you have any views in the matter, post the same on our Forum.

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