Panel for more powers to recover bank dues

NEW DELHI, MAY 10. An expert panel on legal reforms in the banking sector today suggested steps for more efficient recovery of debts due to financial institutions and banks, and structural reforms in various laws, particularly the Debt Recovery Tribunal (DRT) Act. The committee, headed by Mr. T. R. Andhyarujina, a senior Supreme Court advocate, in its detailed report submitted to the Finance Minister, Mr. Yashwant Sinha, also recommended that powers be given to financial institutions and banks to have recourse to securities without going to the courts.

Mr. Sinha said the report would be gone through with all seriousness, but refused to give a timeframe for its implementation.

The committee comprises eight members and was appointed by the Government in March 1999.

Mr. Andhyarujina said the recommendations, once implemented, would allow banks and financial institutions to recover their dues far more expeditiously and efficiently. He said the committee had also recommended amendments to the DRT Act and to the Contracts Act (Sec. 28).

Mr. Andhyarujina said the recommendations also included a totally new Act for recovery of securities, which are in the hands of banks and financial institutions. A new concept of securitisation would be incorporated in the draft Bill, he said.

Asked whether he received any commitments from the Government, he said, ``It was for the Government to consider the report and whatever it may deem fit, they would do that.'' On the recovery of non-performing assets (NPAs), Mr. Andhyarujina said if the report was implemented, there was a possibility of the recovery of large amounts of NPAs.

The noted advocate, Mr. Shardul S. Shroff, who is also a member of the committee, said the report was a follow-up of the Narasimham Committee report on banking reforms.

- PTI

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Section  : Business
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