Latest news with #DRTs
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.
Time of India
14-05-2025
- Time of India
Duo use forged documents, pledge bizman's flat to raise loans worth 2.8 crore from two nationalised banks
1 2 3 Pune: The Kalepadal police are investigating the complaint of a 74-year-old city-based import-export trader, accusing a real estate broker from Katraj and a woman from Jaysingpur in Kolhapur district of forging documents to mortgage his 3BHK flat in Gahunje. As per the plaint, the victim's flat was mortgaged with nationalized banks in Mumbai and Pune to secure loans worth Rs2.82 crore in the FIR registered on May 13, complainant Ashok Nopany, a resident of Undri, also stated that bank officials acted in connivance to sanction loans in the second half of 2022 without verifying the authenticity of the documents furnished by the woman. This is despite the fact that the flat is held jointly in his and his daughter's name and they continue to possess the flat, the complainant broker and the woman he introduced to Nopany as his 'sister from Jaysingpur' created an account in Nopany's name with the Akurdi branch of a cooperative bank and got the loan amounts transferred two banks have now approached the Debt Recovery Tribunals (DRTs) in Mumbai and Pune, seeking possession of the same flat against which they sanctioned Rs1.42 crore and Rs1.40 crore loans, respectively. Documents provided to the DRT in Pune by one of these banks revealed the account opened in Nopany's name with the cooperative his part, Nopany has secured a stay order from a civil court in Wadgaon Maval against the attachment and auction notices issued by the banks in relation to his flat."I have also filed third party intervention pleas with the DRTs. The matters are pending for hearing," Nopany told TOI on officer and assistant inspector of the Kalepadal police, Amit Shete, said, "The suspects named in the FIR are on the run and have switched off their cell phones. Our team will be working on clues to see that they are nabbed soon. For now, a case of criminal breach of trust, cheating, forgery with an intent to use forged documents , forgery of valuable security, use of forged documents as genuine and common intention has been registered as per the provisions of the Bharatiya Nyaya Sanhita (BNS)."Nopany told TOI that in Aug 2022, he was looking for a buyer for his Gahunje flat as he was to raise money for his business. He met the Katraj real estate broker through other real estate agents. The broker evinced interest in buying Nopany's Gahunje flat. After a couple of meetings at his Undri residence, a deal was struck to sell the flat for Rs1.95 to signing an agreement for sale, the broker convinced Nopany to execute the sale agreement with his sister from Jaysingpur to secure a loan at a faster pace. A sale agreement was signed and registered with the Wadgaon Maval sub registrar's office against the payment of a Rs20,000 token to Nopany, with a promise to clear the remainder as soon as the loan is the next few months, when Nopany did not get the promised money, he started asking the broker to cancel the sale agreement. However, the latter kept insisting on waiting further to get the said, "In March 2024, representatives of one of the banks reached the Gahunje society to paste an auction notice in the woman's name on my flat. I checked with them, and they told me that the woman had defaulted on repayment of Rs1.42 crore loan against the flat mortgaged with the bank. I wondered how this could be possible and got a lawyer to secure a search report and a title report. I realised that the woman used a photocopy of the property documents I had given to the broker to create forged documents to mortgage the flat. She later transferred the sale agreement in favour of the broker."He added, "Just when I was sorting out this issue with one bank, officials from the other bank's Shivajinagar branch tried to paste another auction notice on my flat claiming recovery of Rs1.40 crore loan dues. In both the cases, the banks did not have search and verification reports and nor did they contact me before sanctioning the two loans."API Shete said, "The banks have suffered huge financial loss, but they have not registered complaints. Instead, they moved the DRTs to claim possession of the flat. We would be writing to them to submit reports as to what inquiry they have done before sanctioning and disbursing the loans and who all were part of the loan sanctioning process."
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.
