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. 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 Restrucutring (CDR) mechanism for resolution of the assets acquired.SASF is managed by a Board of Trustees with Shri Rakesh Sharma as its Chairman. Other members are Shri Krishna Prasad Nair, Shri G.M.Yadwadkar, Shri P. Pradeep Kumar and Shri V.Kannan.SASF has adopted a three pronged resolution strategy:
- 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.