AP Govt Proposes To Amend Act To Help Recover Sticky Assets

Hyderabad, July 25: | Updated: Jul 26 2002, 05:30am hrs
In an effort to recover the NPAs from the borrowers of Urban Co-operative Banks, the Andhra Pradesh government has proposed to amend some of the sections in the Protection of Depositors of Financial Establishments Act 1999 giving leverage to the authorities to confiscate the properties of the borrowers besides the directors of the banks. The AP home minister T Devender Goud has revealed that the state government has decided to extend more powers to the authorities helping them to recover loans fully from willful defaulters.

“There is a need to amend the section three and five of the Protection of Depositors Act,” the minister told the assembly in his reply to a notice under rule 304 on white-collar crimes in the state Assembly on Thursday.

The government has also decided to provide representation from the depositors on the boards of the co-operative banks and it will create a professional committee to oversee the financial decisions of the Urban banks, he added.

The home minister said that the state government has arrested about eight auditors of the co-operative banks in connection with swindling of funds. It has also planning a coordination committee between officials of RBI and Registrar of Cooperatives.

Further, the state government is also actively pursuing a proposal to check dubious schemes through an enactment of a new law Andhra Pradesh Multilevel Marketing and Pyramid Selling Schemes (Prohibition) Act.