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Time of India
24-05-2025
- Business
- Time of India
Finance Ministry urges banks, DRTs to speed up debt recovery
Tired of too many ads? Remove Ads The finance ministry has called on banks, debt recovery tribunals and other stakeholders to work together to reduce the backlog of pending cases and create a more effective recovery ecosystem, to help free up capital stuck in capital could be redeployed "for productive use in the economy," the ministry said in a statement on appeal was made during a colloquium held earlier in the day with chairpersons of Debt Recovery Appellate Tribunals (DRATs), presiding officers of debt recovery tribunals (DRTs), and representatives of various public and private sector banks as well as the Indian Banks' the key issues deliberated were prioritisation of high-value cases, use of alternate dispute resolution mechanisms such as Lok Adalats, and further reforms to reduce turnaround time for various processes in DRT proceedings, the statement was also pointed out that robust monitoring and oversight mechanisms by banks are key for increasing recovery through ministry also highlighted key initiatives taken by the Department of Financial Services such as the adoption of revised DRT regulations, mandatory e-filing, hearing through video conferencing, and hybrid hearings for reducing turnaround time of the matters adjudicated by the tribunals.
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Business Standard
24-05-2025
- Business
- Business Standard
Finance Ministry calls for joint effort to cut backlog at debt tribunals
The Finance Ministry on Saturday urged all stakeholders to collaborate in reducing pendency of cases at debt recovery tribunals (DRTs) by establishing an effective recovery ecosystem. This would facilitate the redeployment of capital locked in cases pending before DRTs for productive use in the economy, the finance ministry said in a statement. During a colloquium of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) organised by the Department of Financial Services (DFS), the Ministry of Finance also discussed effective implementation of DRT Regulations, 2024 and prioritisation of high value cases in DRTs for optimal recovery. Justice S V N Bhatti, Judge of the Supreme Court of India, graced the meeting which was also attended by senior officers of the DFS, representatives of various public and private sector banks and Indian Banks' Association. DFS Secretary M Nagaraju highlighted various key initiatives taken by the Department such as adoption of revised DRT Regulations, mandatory e-filing, hearing through video-conferencing, hybrid hearings etc. for reducing turnaround time of the matters adjudicated by the tribunals. During the meeting, introduction of further reforms to reduce turn-around time for various processes in DRT proceedings etc. were also discussed. Robust monitoring and oversight mechanisms by banks for increasing recovery through DRTs and use of alternate dispute resolution mechanisms including Lok Adalats for expeditious disposal of cases were also discussed.
Economic Times
11-05-2025
- Business
- Economic Times
Finmin asks banks to strengthen legal recovery processes
The finance ministry is pushing banks to tighten legal recovery processes by reviewing advocates, streamlining case allocation, and reconciling settled cases. This directive follows concerns raised by the Supreme Court regarding the Bhushan Power and Steel acquisition. Banks are urged to expedite resolutions, minimize delays in NCLT filings, and actively pursue the vacation of stay orders to resume stalled processes. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The finance ministry has directed banks to further strengthen legal recovery processes, including doing periodic reviews of empanelled advocates, rationalising case allocation, and reconciling settled cases in recovery tribunals."Banks have been told to ensure that there are no delays and put in place effective monitoring and oversight mechanisms for efficient management of all cases, including those pending in the courts," said a government official, requesting ministry's directive comes at a time when banks are still to work out their strategies on the Supreme Court verdict scrapping JSW Steel 's ₹19,350-crore acquisition of Bhushan Power and Steel (BPSL) four years ago. The top court had observed that contradictory stands taken by the committee of creditors, or CoC, at various stages of proceedings clearly proved that it had played foul and not exercised its commercial wisdom in the interest of the government is inclined to back banks to explore all legal options, it wants them to plug the loopholes to avoid any further similar instances."The performance of advocates also needs to be assessed and accordingly rationalised in the assignment of cases," the official cited above said, adding that the idea is to continuously monitor and reduce pendency at various stages.A bank executive said lenders have also started to reconcile cases that are pending in debt recovery tribunals and DRATs but have already been settled."Different approaches will be pursued for small and high-value cases pending in DRTs so that resources are not spread and maximum recovery is achieved," he week, financial services secretary M Nagaraju chaired a review meeting to monitor the progress of PSBs in clearing pending cases for admission at the National Company Law Tribunal (NCLT).In a statement, the finance ministry noted that banks were advised to expedite the resolution process by minimising delays in filing CIRP applications, avoiding asking for unnecessary adjournments, and simultaneously keeping other channels of recovery open."The Advocates of the Banks should oppose any attempts to delay proceedings on frivolous grounds by the opposing parties," it said, adding banks were urged to review their top 20 cases regularly and also monitor accounts where resolution plans are pending for consideration with the CoC for more than three government further directed banks to focus on getting stay orders vacated so as to resume the resolution process without further loss of time.
Time of India
11-05-2025
- Business
- Time of India
Finmin asks banks to strengthen legal recovery processes
The finance ministry is pushing banks to tighten legal recovery processes by reviewing advocates, streamlining case allocation, and reconciling settled cases. This directive follows concerns raised by the Supreme Court regarding the Bhushan Power and Steel acquisition. Banks are urged to expedite resolutions, minimize delays in NCLT filings, and actively pursue the vacation of stay orders to resume stalled processes. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The finance ministry has directed banks to further strengthen legal recovery processes, including doing periodic reviews of empanelled advocates, rationalising case allocation, and reconciling settled cases in recovery tribunals."Banks have been told to ensure that there are no delays and put in place effective monitoring and oversight mechanisms for efficient management of all cases, including those pending in the courts," said a government official, requesting ministry's directive comes at a time when banks are still to work out their strategies on the Supreme Court verdict scrapping JSW Steel 's ₹19,350-crore acquisition of Bhushan Power and Steel (BPSL) four years ago. The top court had observed that contradictory stands taken by the committee of creditors, or CoC, at various stages of proceedings clearly proved that it had played foul and not exercised its commercial wisdom in the interest of the government is inclined to back banks to explore all legal options, it wants them to plug the loopholes to avoid any further similar instances."The performance of advocates also needs to be assessed and accordingly rationalised in the assignment of cases," the official cited above said, adding that the idea is to continuously monitor and reduce pendency at various stages.A bank executive said lenders have also started to reconcile cases that are pending in debt recovery tribunals and DRATs but have already been settled."Different approaches will be pursued for small and high-value cases pending in DRTs so that resources are not spread and maximum recovery is achieved," he week, financial services secretary M Nagaraju chaired a review meeting to monitor the progress of PSBs in clearing pending cases for admission at the National Company Law Tribunal (NCLT).In a statement, the finance ministry noted that banks were advised to expedite the resolution process by minimising delays in filing CIRP applications, avoiding asking for unnecessary adjournments, and simultaneously keeping other channels of recovery open."The Advocates of the Banks should oppose any attempts to delay proceedings on frivolous grounds by the opposing parties," it said, adding banks were urged to review their top 20 cases regularly and also monitor accounts where resolution plans are pending for consideration with the CoC for more than three government further directed banks to focus on getting stay orders vacated so as to resume the resolution process without further loss of time.
