Bad Loan Menace: Dr Subramanian Swamy To Pursue the Issue with RBI as per SC Directions
Moneylife Digital Team 07 October 2021
Bharatiya Janata Party (BJP) leader and member of Parliament Dr Subramanian Swamy says the Supreme Court ruling  gives him the mandate to pursue the issue of non-performing assets (NPAs) in banks with the Reserve Bank of India (RBI) for a transparent action from the regulator.
 
Declining to entertain Dr Swamy’s writ petition, the apex court had allowed Dr Swamy to make a representation before RBI. The BJP leader had filed a writ petition for framing of guidelines to deal with the menace of NPAs in the banking sector.
 
A bench headed by justice DY Chandrachud and comprising  justices Vikram Nath and  BV Nagarathna told  Dr Swamy, who argued in person, "How do we frame guidelines so that NPAs do not occur? It is for the legislature."
 
 
During the hearing, the BJP leader contended that his plea deals with cases and methods to ensure that bad loans do not occur again and added that this would benefit everybody. The court can set up a committee in the matter, he said while insisting that "we can make out a case."
 
Justice Nath observed that RBI and the finance ministry have been issuing guidelines and had framed policies so that NPAs do not occur. "There is no need for us to interfere in all of this," the bench noted.
 
Dr Swamy argued that RBI maintains extraordinary secrecy in connection with information on NPAs. When a bank closes down, people run from pillar to post for their funds.
 
He further contended that judgements referred in the petition along with others, which states how courts have not taken a hard-line position, that it cannot enter this domain.
 
Justice Chandrachud replied, "We can say ultimately RBI can look at your material and take a decision at the policy level. But constituting a committee cannot happen."
 
Dr Swamy's plea stated that it is appropriate for this court to constitute an expert committee for necessary guidelines.
 
The bench, however, says, "In the matter of this nature, the reliefs which have been sought are core issues of policy which pertain to the domain of expert bodies such as RBI."
 
The bench added that the court could not tread into the policy domain.
 
The bench, in its order, says, "We leave it open to the petitioner to submit a representation or the plea itself as a representation to RBI so that a view can be taken so that any guidelines be duly modified to address the grievances. The plea is accordingly disposed of."
 
Comments
mahesh.bhatt
2 months ago
Its global corrupt Business practices of Politics Banks Businessmen till economy crashes like 2008 / or Covid 19 they will make hay out of laws legally unetchically All is well
shrikrishnayprabhu
2 months ago
Core or Non Core matter, BUT MONEY LOST by Banks in NPA is Common man savings & sincere small taxpayers money!

Banks & their Top Mngt. who get FAT Salaries are accountable for writing off BIG Loans trunking NPAs.

We know many off record instances where Banks people take under table money to pass loans & off record again advise means to turn CRORES loans into NPAs while the company directors scoot loot money through various means & transfer money over years in their close family or assets outside India
VN KULKARNI
2 months ago
EXCELLENT ORDER. BUT WHAT ABOUT THE ISSUES RAISED BY THE PETITIONER?. IT WILL THE SAME OLD STORY,OPERATION SUCCESSFUL PATIENT DIED.
na.acharya2104
2 months ago
He is a firebrand whistle blower of the highest order . I m sure he l continue to do the good work regardless of d fact if he is with any party or not .for eg RJB even bfore joining BJP he did move d SC .
angelo.extross
2 months ago
Will Dr. Swamy pursue this as "BJP Leader"?
This evening's news is that he is shunted out
of the BJP executive.
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