20 POINTS PROGRAMME (TPP) Suggested on the Enforcement of Security Interest and Recovery of Debt Laws and Miscellaneous Provisions (Amendment) Bill, 2016
Sir,
Most of the Banks including Govt. is murmuring on Non Performing Asset (in short NPA) without tearing on dangerous level of Written Off (in short W.O.) accounts/amount.
As per Indian Institute of Banking & Finance Journals, there has always been a burning and alarming figure of NPA. The reason is very simple that NPA concept is wrong since inception to be termed as a BLACK CONCEPT upon India Economy/Banking. Maximum, this may be to the extent for marking to the amount of non-service of interest and overdue instalments, if any. Special committee is suggested to be formed to review and work in this line.
With these above reasons, it is a long felt necessity to pass SARFAESI and DRT/DRAT (amendment) bill in 2016 itself for covering the following 20 Points Programme/ suggestions in succeeding paragraphs:
1. U/S 14 District/Metropolitan Magistrates be given stay powers up to Rs.10.00 lacs and thereafter DRT jurisdiction be started only. There are some anomalies which have been noticed in some cases where borrowers or Guarantors or Mortgagors have been victimised to great extent.
Some District Magistrates are passing Ex-parte Orders without summoning to Opposite / Other affected party/ies. Hon`ble Supreme Court has already laid down a law that no one should be left unheard. This will create transparency also. Some Bank`s are playing mischief to get unlawful Orders from the hands of Govt by saving their own skin to burn subsequently.
Some other District Magistrates are committing illegal actions by superseding even to Debt Recovery Tribunals or Debt Recovery Appellate Tribunals, where Sarfaesi Application (in short S.A.) under section 17 for seeking stay after paying full fee maximum up to Rs.1,50,000/- etc or even under section 19 where Original Applications are still sub-judice since long. Clear law be amended giving directions to District Magistrates not to interfere in such cases. The plea is that District Magistrates represent to a small level of District whereas Debt Recovery Tribunal represents to huge number of Districts of a state or even more states like wise. The matter is not stopped here itself, even Debt Recovery Appellate Tribunals, which represent to various states, are being superseded by District Magistrates more intentionally.
2. STAY APPLICATIONS U/S 17 BE DECIDED INSTANTLY i.e. WITHIN TIME BOUND PROGRAMME just like bails in criminal cases: There are cases which are long pending for several years denying the justice to the affected parties and their properties have been sold /auctioned arbitrarily. A statistics, if collected from all the Debt Recovery Tribunals /Debt Recovery Appellate Tribunals / Hon`ble High Courts/Supreme Court, this will support to the suggestion here itself.
3. OPEN RECOVERY COUNTERS IN MAIN BRANCHES OR REGIONAL/ZONAL/CIRCLE OFFICES: There have been instances where Bank Managers/Heads remain confined to their Cabins and the masses having all possible intentions to negotiate with Banks but they are insulted and humiliated except that the staff entertain to those from whom they expect mutual considerations in ratio of waivement or remission of amounts. “Go there and come here” malpractice be arrested hence forth.
4. RECOVERY CAMPS BE ALLOCATED TARGETS TO ACHIEVE AND SURPASS THE SAME: Effective policy is warranted for which some Expert Committee be formed.
5. CONSENT DECREE CONCEPT BE ENCOURAGED: Courts/Debt Recovery Tribunals take very long time to decide any matter. Legal remedies to be exhausted fully have a long path to complete, my research and personal experience suggest to end the legal recourse through obtaining Consent Decrees or Original Applications allowed.
6. EMERGENCE TO ESTABLISH NEW JUNIOR DEBT RECOVERY TRIBUNALs FOR RECOVERY CASES BEWEEN RS.1.00 LAC TO RS.10.00 LACS: This will prove as a miracle in speedy recovery of Banks and Financial institutions towards Non Performing Assets (in short NPA) and Written Off (in short W.O.) accounts. Junior DRTs be empowered to settle NPA / W O a/cs independently.
7. DICGC / ECGC ETC membership be made compulsory to pay fee and not optional to opt out from such schemes: With this revival of concept, Banks may be able to arrest their large avoidable losses.
8. Insurance Companied getting huge amount of premium be made essential parties whereever any LARGE VALUE FRAUD has occured or suspected: It is key factor to arrest any dialution of securities and ensuring profits .
9. Without touching last period of sanction of a loan i.e. for 15 years or more but due to heavy recession in market, symptoms are alarming in this year or earlier than full amount should not be declared as NPA. Prorata or ratio mechanism be developed to save balance amount of NPA.
10. WRITTEN OFF A/C BY DISCLOSING ITS PRESENT LEVEL DIRECTORY BE PUBLISHED TO CLOSELY MONITER INDEPENDENTLY BY VARIOUS DEPARTMENTS: Some borrowers have become chronic defaulters and professionals to cheat in Govt Schemes.
11. Written Off Departments be separate and independent in Ministry Of Finance, Reserve Bank of India and Fast track Courts needed to be established for arriving on ONE TIME SETTLEMENTS (In short O.T.S.).
12. Uniform Recovery policy year wise should be attached with plaints / Original Applications /Appellate Authorities etc: Recovery Courts /Tribunals are kept blind about each Bank`s policy. Reserve Bank of India should prepare a Uniform Policy applicable against each Bank. A copy be enclosed with Plaints etc being mandatory. I have practically experienced when even Judges prevail upon borrowers to increase instalments before passing any consent decree particularly in Punjab during 1996 to 1999. It is a direct help to Banks/FI to express their gratitude.
13. PURGED WRITTEN OFF A/C BY DISCLOSING ITS PRESENT LEVEL DIRECTORY BE PUBLISHED TO MONITER / CAUTION FINANCERS THROUGH INDEPENDENT DEPARTMENTS: Since it was a DIRECT FINANCIAL LOSS caused to the whole of Country.
It is a matter of deep concern that there is no information or directory or website to see a list of written off accounts and purged written ff a/cs which has directly resulted into direct loss to Public Money for which Banks etc are custodians.
14. ONE TIME SETTLEMENT (OTS) Schemes yearly be published and provided to each defaulter / affected party against acknowledgement with date in presence of two independent witnesses. This will convert up to 100 % provisions made by Banks into direct profits besides to make such a/c as income generating to Banks. This is a vital and double field of income. Authorised Compromise Approving Cells be established without delay being remedial step.
15. RE-STRUCTURE SCHEMES /NURSHING PROGRAMME SCHEMES UNIFORMLY BE PREPARED: Re-schedulement of border line case or critical NPAs where assets are of more value but facing temporary phase of not serving interest or instalments etc be considered with full sympathy.
16. PLAINTS / Original Applications ETC BE DISMISSED, IF A/C RE-STRUCTURED OR COVERED UNDER NURSHING PROGRAMME SCHEMES:
17. POST DATED CHEQUES (PDC) COLLECTION SCHEME be made accountable against erring Bank staff. During inspections, even various Inspectors / Auditors do not report lists of such PDCs not presented or eve 138 N.I. ACT cases are not filed.
18. SENIORITY IN PROMOTIONS SHOULD PREVAIL: Words worth has rightly proverbed that “CHILD IS A FATHER OF A MAN”. This proverb has not been stopped here when “EVEN UNBORN CHILD WILL BE FATHER OF A MAN”. Probabilities of Corruption in promotions cannot be ruled out.
Breaking the seniority lists, has given unfair path to move fast. Unless and until one`s job/ or seniority is secured and protected, no one can take firm decision in the interest of any institution. Honest employees have sacrificed their future and everything but survived for a longer period.
19. RED DRESSED COMMANDO SCHEME TO RECOVER BANK/FI DUES URGENTLY REQUIRED TO ENFORCE SARFAESI ACT:
20. BANK OFFICERS ABOVE CHIEF MANAGER LEVEL (RETIRED) BE MADE MEMBERS OF VARIOUS EXPERT RECOVERY COMMITTEES:
Keeping in view the afore said suggestions, you may fee free to discuss one by one as I am a practical Banker worked all most all parts of the Country. I am enclosing my Resume for detailed Banking experience.
