Stressed Assets Stabilization Fund (SASF) was constituted by the Govt. of India pursuant to a provision in the Union Budget 2004-05, a Special Purpose Vehicle (SPV) Trust for acquiring stressed and non-performing assets of erstwhile Industrial Development Bank of India (IDBI).
SASF has been accorded the status of Financial Institution to take advantage of provision of the Recovery of Debts due to Banks and Financial Institutions, 1993 by approaching Debt Recovery Tribunal (DRT) as well as Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002, Corporate Debt Restructuring (CDR) mechanism for resolution of the assets acquired along with proceedings under Insolvency and Bankruptcy Code, 2016 (IBC) through NCLT.
SASF is managed by a Board of Trustees appointed from time to time by Govt. of India. As per notification F.No.7/8/2019-BOA.II dated March 04, 2020 issued by GoI, DFS the present Board of trustees are as below:
|1||Shri Ashwani Bhatia||MD, SARG, State Bank of India||Chairman Trustee|
|2||Shri Sunil Mehta||Chief Executive Indian Bank Association||Trustee|
|3||Shri Shanti Lal Jain||ED, Recovery Bank of Baroda||Trustee|
|4||Shri Birupaksha Mishra||ED, Recovery Union Bank of India||Trustee|
|5||Shri Alok Agarwal||Executive Trustee, SASF||Executive Trustee|
SASF has adopted a three pronged resolution strategies:
- Debt Restructuring in respect of units, which are potentially viable under and outside CDR mechanism.
- Compromise settlement viz. one time / negotiated settlement of dues where units have lost viability
- Legal measures by way of filing recovery suit against the promoter/ companies in DRT and taking over the units under the provisions of SARFAESI Act 2002 / NCLT.
SASF is subject to Audit by Comptroller and Auditor General of India (CAG). The CAG report is available at -CAG Report - Performance Audit of SASF
The Report of the Public Accounts Committee is available atPublic Account Committee