Fast Track Court For Loan Defaults Above Rs.100cr

Government mulls roping fast-track courts to chase bad loans of Rs 100cr+ -Economic times 13th June 2014

NEW DELHI: The government is mulling fast-track courts to try loan default cases of over Rs 100 crore as part of a plan to reduce the pileup of bad loans at state-run banks. 

The finance ministry has set up a committee headed by VK Bhasin, former secretary in the law ministry's legal department, to suggest measures to deal with high-value willful defaulters. 

"The committee will also revisit recovery laws to make them more effective," a senior government official said on condition of anonymity. There are over 40,000 cases worth Rs 1.73 lakh crore pending before various debt recovery tribunals. 

"These (fast-track) courts will have the mandate to settle issues within a time frame," the official said, adding that they will be empowered to auction personal assets of promoters to recover money. 

The finance ministry is also looking at ways to make promoters accountable for the defaults. 

"Promoters often hide behind a corporate veil and take no responsibility for failed ventures. The committee will suggest legal routes to make such promoters accountable," the official said. The top 30 non-performing accounts of state-run banks account for 40.2 per cent of their gross bad loans. 

In 2013, bank unions had put out a list of top corporate defaulters, which included Kingfisher AirlinesBSE 3.31 %, Winsome Diamond, Zoom Developers and Electrotherm IndiaBSE 1.29 %. 

Gross NPAs of public sector bank rose to 4.44 per cent in March from 3.84 per cent in the year-ago month. "In the case of Kingfisher Airlines, the banks could not seize the promoter's personal assets because of the existing legal complications. 

We need to work out a mechanism where there should not be a rich promoter and an ailing company," said one of the committee members, which, besides banks, has representation from Indian Banks' Association. 

The government is also  .. 

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Court Stay On APAR

AIUBOSA CIR GS: 185 / 2013-14 dated 06.06.2014

ALL INDIA UNION BANK OFFICER STAFF ASSOCIATION

(Affiliated to AIBOA) Phone: 9381036405 / 9791027140

Email: dsganeshanaiboa@gmail.com : dsganesanubi@gmail.com

Address: Don Flats, I Floor, No.19, SRP Colony 7th Street, Peravallur,

Chennai 600082

Cir.No.GS:185 / 2013 - 14

06.06.2014

To

All Officers

Dear comrades ,

OUR STAND POINTS ON APAR AND BATCH CONCEPT UPHELD BY HON’BLE MADRAS HIGH COURT

The issues confronting the officers in our Bank are:

1. APAR Marks: It is our organisation in our Bank, through judicial intervention in 2012, brought substantial relief to officers in the matter of APAR marks which is considered an importantingredient in the promotion process. Not only that, we have brought in, in the process, anappeal provision against the APAR marks awarded by the higher authorities, as an element ofbias prevails in awarding marks to officers. In the last process of promotion (2013-14),management had implemented sincerely the procedure established by our organisation inthe bank.

 

But this time (2014-15), the bank has altered the “applicability of APAR marks” only for thepromotion process from Scale 1 to 2 and Scale 2 to 3, i.e., instead of average of 75% marks

for the preceding three years, prescribed in the Government Guidelines, every year theabove mentioned officers are to secure 75% marks. Our organisational contention is that in

the same promotion process (2014-15), there cannot be two different yardsticks for selectionpertaining to APAR marks. Our sincere appeals have not evoked the reasonable response

from the management to correct the unscientific application of rules.

2. UNIFORM APPLICATION OF BATCH CONCEPT FOR PROMOTION:
   Bank while recruiting the Scale 1 officers in the year 2011 permitted the new recruits to join on or before 04.07.2011. There were officers who had reported for duty in July 2011.
   As the number of eligible officers is falling short, the bank has considered a relaxationof 3 months and 1 day. The government guidelines provide inclusion of batch for the
   purpose of promotion. We have requested the Bank to include the entire batchof officers so as to enable them to participate in the process of selection.
   Bank has failed to see the reasoning behind our arguments.

3. CONVERSION OF RDOS – A REPEAT EXERCISE DEMANDED:
   The promotion policy for officers provides conversion of specialized category to main stream on completion of five years. Accordingly, we have taken up the issue of conversion of Specialized Category of Officers to

Main Stream. The paradox of conversion exercise is that a RDO having 5 years of service to his credit to head the branch as Branch Manager is declared ineligible to join main stream based on 3 to 5 minutes personal interview. In our Bank, a directly recruited officer on mere completion of 2 years is eligible to move to Scale 2, whereas even after completion of 5 years of service and handling the branch as a Branch Head is denied of conversion in the same scale.

The so called officers’ federation has already enjoying the comfort of hibernation. As advised by the AIBOA leadership, our organisation having committed to the welfare of officers’

community in our Bank has sought relief through Judicial Intervention.

 “We are happy to report that the Hon’ble High Court of Madras has passed an order directing the Bank to allow the members of our organisation who were affected by APAR as well as Batch Concept to participate in the examination”.

Please await for further communication.

With Greetings,

Yours Comradely,

(D. S. GANESAN)

General Secretary

PLEASE CIRCULATE AMONG ALL OFFICERS