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RBI examining collusive asset sale complaints vs StanChart - Fin min
This story was originally published at 08:02 IST on 11 March 2026
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NEW DELHI – The Reserve Bank of India has received two complaints against Standard Chartered Bank of repeated collusive disposal of assets related to three builders at a discounted value, Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha in a written reply Tuesday. The complaints were filed as the sales were executed even as the final order on recovery proceedings were awaited from the court. The central bank is examining one of the two complaints.
The minister, citing the RBI, also said that during recovery proceedings against a borrower, it is within the secured creditor's commercial judgement whether to sell the asset. The RBI on its part continues to monitor whether supervised entities comply with its regulatory guidelines, he said.
According to the RBI, the supervisory evaluation division received a reference in October 2024 about recovery proceedings initiated by a secured creditor against the assets of one of the builders under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Though the final order from the Debts Recovery Appellate Tribunal, Delhi, was pending since July 2022, Standard Chartered sold the assets on Jan. 25, 2024, as it "was a commercial judgement of the concerned entity", the minister said. In June 2022, the Debts Recovery Tribunal, Jaipur, had quashed the bank's recovery proceedings with regard to the assets of one of the builders. In July 2022, Standard Chartered had gone in appeal to the appellate tribunal in Delhi.
The central bank received another complaint related to the matter in February, which "is under examination by RBI", the minister said in his reply to a question. End
Reported by Shweta
Edited by Rajeev Pai
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