28 Feb 2024 - {{hitsCtrl.values.hits}}
By Yohan Perera
Minister of Justice Wijeyadasa Rajapakshe this week alleged that some banks have misused Parate Execution rights and are engaged in some sort of mischief.
“Parate execution is the right given to banks to auction properties which customers keep as collateral when they borrow funds.
Some banks sell properties that they take over from borrowers to their close associates.
These properties are resold at a higher price later,” he said addressing a press conference organised by the President’s Media Division yesterday.
Wijeyadasa went on to say that banks are also making use of the increasing land prices to make profits out of properties they auction.
“Parate execution has a long history. This was introduced in Sri Lanka under the Roman-Dutch law. Only the state banks were given the parate execution rights initially, but the right was given to private banks in the 1980s,” he recalled.
The Minister said the new legislation will be brought concerning parate execution soon.
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