NEW DELHI: Against the backdrop of Vijay Mallya episode, the Lok Sabha today passed a bill that provides for expeditious recovery of bad loans by the banks, with the government saying the country cannot have a banking system where people take loans and do not repay.
The Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016, passed by by voice vote, seeks to amend four laws — Sarfaesi Act, DRT Act, Indian Stamp Act and Depositories Act.
Finance Minister Arun Jaitley said the banks must be empowered to take effective legal action against defaulters and the insolvency law, securitisation law and DRT law are steps in that direction.
At the same time, he assured the House that banks will take a compassionate view on education loan defaults but there will be no waiver.
“The present law simplifies the procedure by which there will be quick disposal of pending cases of banks and financial institutions by Debt Recovery Tribunal,” Jaitley said.
Pitching for speedier recovery of debt, he said, “We cannot have a banking system where people take loans and do not repay.” (AGENCIES)
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