Debt recovery tribunals: Supreme Court expresses concern

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New Delhi | Published: December 15, 2016 1:31:08 AM

Expressing its concern over dismal state of affairs at debt recovery tribunals and their appellate bodies, the Supreme Court on Wednesday blamed inadequate recovery mechanism for rising NPAs of the banks.

Expressing its concern over dismal state of affairs at debt recovery tribunals and their appellate bodies, the Supreme Court on Wednesday blamed inadequate recovery mechanism for rising NPAs of the banks.

“There are lakhs of crores of rupees as NPAs and one of the reasons for their non-recovery is that the mechanism for recovery is not up to the mark…there are problems of infrastructure and man power and proper training there,”a bench headed by Chief Justice T S Thakur said, while hinting at asking the National Law School and IIM-Banglore to jointly conduct a study as to what “ails” these quasi-judicial bodies meant for recovering bad loans of financial institutions.

Solicitor General Ranjit Kumar told the bench that various steps, including amending the laws governing the DRT and the DRAT, have been taken to strengthen the loan recovery process.

He also said that the five-member high level committee constituted by the government, which comprises RBI executive director and other top brass of public sector banks, to give final recommendations on banking reforms, including the steps being taken to recover huge non-performing assets (NPAs) of the nationalised banks is yet to submit its report.

While hearing the PIL by the CPIL, the Supreme Court had in March taken suo motu cognizance of a newspaper report that R1.14 lakh crore of bad loans had been written off by state-owned banks between 2013 and 2015.

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