Monday, September 9, 2013

File FIR Against Willful Defaulters

Banks told to file FIRs against wilful defaulters--Financial Express-10th September 2013

Determined to address the problem of rising bad loans, the finance ministry has asked banks to register first information reports (FIRs) and initiate criminal proceedings against wilful defaulters. Also, the ministry is also planning to hold more frequent meetings with the Central Bureau of Investigation (CBI) as well as regulators Reserve Bank of India and Securities and Exchange Board of India (Sebi) to avert and/or tackle potential dangers to the banking system caused by wilful defaulters, official sources said.
“Public sector banks have been told to show zero tolerance towards wilful defaulters and lodge FIRs against them. Taking over the company management from such defaulters is also a must. Not just the banking system, but society is paying a heavy price due to such defaulters," financial services secretary Rajiv Takru told FE.
Banks are already submitting to the RBI on a quarterly basis a list of those who deliberately default (cases of over R25 lakh where suits have not been filed but were classified as doubtful/loss accounts). In addition, the RBI and CIBIL have a database of suit-filed accounts, including wilful defaulters of over R25 lakh.
According to a December 2012 statement, as on March 31, 2012, PSBs had 3,536 such suit-filed accounts worth R16,525 crore and 1,138 non-suit-filed accounts worth R4,175 crore. The RBI and CIBIL forward to Sebi a copy of the list to prevent them from accessing the capital market. Of course, this is still a relatively small, but growing

My Views are expressed in following blog and may be read by clicking on following link

Police officers do not lodge FIR in their registers, do not execute warrants issued against VIPs by various courts ,do not question criminals but tortures the person who wish to lodge complaint against criminals , defaulters and law breakers.

There are several such cases where District court or District certificate officer has issued Distress Warrant or Body warrant against defaulter of a bank, but police officials do not execute the same until they are fed for it. They do not act on FIR lodged against bank defaulters or against a person who played foul game and who cheated and carried out fraudulent transaction.

 EVEN  CBI do not act against such cases for decades and for years , There is none to take care of it. As such the advice given to bankers to file FIR against willful defaulters is nothing but firing in air.

Has government taken any step in last 60 years to change the system and procedure of police department which give them unrestricted powers and which tempts them to take whimsical decisions and arbitrary action against honest and true citizens?

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