The Supreme Court on Tuesday asked the government to explain threadbare the mechanism followed to recover bad loans while making a preliminary remark that the present system for recovery does not seem perfect.
“Tell us about mechanism for recovering the dues. There may be some mechanism to deal with it. There is also a need of amendments. Suggest the ways and means by which these things can be prevented,” a bench comprising Chief Justice of India T.S. Thakur and Justices R. Banimathi and U.U. Lalit said.
“We are trying to highlight the issues as there is something not working. If your system would have been perfect then things would not have happened,” the judges said while referring to the huge amount of bad loans. The observations came when Prashant Bhushan, appearing for the NGO ‘Centre for Public Interest Litigation,’ referred to the issues to be considered by the court. The issues were framed by him in pursuance of an earlier order. Solicitor-General Ranjit Kumar, appearing for the Centre, said the government was in the process of amending laws to safeguard banks against write-offs and non-performing assets. The matter was fixed for further hearing on July 19.
