The changes proposed by Modi govt are bold, practical & badly needed for India to turn the page on a brutal and long downward phase in its credit cycle.
The right measure to evaluate the IBC is not the yardstick of what happened under SICA or DRT laws, but what is happening now – a 270-day deadline for resolving cases.
New Delhi: During Operation Sindoor, the United States which had received intelligence suggesting that India had launched BrahMos cruise missiles to strike targets inside...
It is true that Fin Creditors i.e. PSU / Private Sector Banks should get more % because it is a public money pumped by the Central Govt to the Banks. At the same time in order to stop the continuance such wilful defaulters long list two things Govt should think of enacting:-
1. That all Bank loans above 100 Crores should be referred to a committee comprising RBI / Fin.Ministry / Bank Executives and CBI officials so that the time wasted in court cases will be stopped and also wilful defaulters will find it difficult to continue.
2. Secondly, Banks high level officer should be posted with such companies for monitering the fund diversion by them illegally and also to see whether the loan is being utilised only for the purpose the loan was taken.
3. Any CAs, CS etc who wilfully exaggerate the requirement amount with the conniviance of the defaulters should also be taken to task like deloite etc.
Sir, it is not enough that Govt makes amendments to facilitate Fin. creditors to get more share and also upper hand in settlement. In this ESSAR case, Essar Ruias are still having 55,000 crores as stated by them for buying their Essar Steel. Why cant the Govt and Judiciary make ESSAR Ruias to caugh up the remaining amount of about 13000 crores and make the payment to Operational Creditors and Fin. creditors so that everybody get their 100% share. This wilful defaulter who is having this much crores for buying back their steel plant should be made to pay the diff amount in Court and they should not be allowed to fly outside India like Mallya, Nirav Modi, Lalit Modi etc. Govt is supposed to everybody including Operational Creditors their hard work money apart from Fin. creditors. Only then this will be a lesson to all the wilful defaulters. Further the erring Bank officials should also be severely punished so that the NPAs will come down.
It is true that Fin Creditors i.e. PSU / Private Sector Banks should get more % because it is a public money pumped by the Central Govt to the Banks. At the same time in order to stop the continuance such wilful defaulters long list two things Govt should think of enacting:-
1. That all Bank loans above 100 Crores should be referred to a committee comprising RBI / Fin.Ministry / Bank Executives and CBI officials so that the time wasted in court cases will be stopped and also wilful defaulters will find it difficult to continue.
2. Secondly, Banks high level officer should be posted with such companies for monitering the fund diversion by them illegally and also to see whether the loan is being utilised only for the purpose the loan was taken.
3. Any CAs, CS etc who wilfully exaggerate the requirement amount with the conniviance of the defaulters should also be taken to task like deloite etc.
Sir, it is not enough that Govt makes amendments to facilitate Fin. creditors to get more share and also upper hand in settlement. In this ESSAR case, Essar Ruias are still having 55,000 crores as stated by them for buying their Essar Steel. Why cant the Govt and Judiciary make ESSAR Ruias to caugh up the remaining amount of about 13000 crores and make the payment to Operational Creditors and Fin. creditors so that everybody get their 100% share. This wilful defaulter who is having this much crores for buying back their steel plant should be made to pay the diff amount in Court and they should not be allowed to fly outside India like Mallya, Nirav Modi, Lalit Modi etc. Govt is supposed to everybody including Operational Creditors their hard work money apart from Fin. creditors. Only then this will be a lesson to all the wilful defaulters. Further the erring Bank officials should also be severely punished so that the NPAs will come down.