The Hindu Business Line : DRTs help recover Rs 1,200-cr dues

THE two Debts Recovery Tribunals (DRTs) in Chennai have helped recover close to Rs 1,200 crore due to financial institutions from the borrowers, according to Mr H.P. Chaturvedi, Presiding Officer, DRT (I), Chennai.

Speaking at the inaugural session of the first special sitting organised by the Coimbatore DRT here on Saturday, he pointed out that the Supreme Court, which recently upheld the Constitutional validity of the Securitisation Act, has expressed concern over the size of the NPAs of financial institutions, which has reached Rs 1 lakh crore. Even after the establishment of the DRTs, the recovery of NPAs has not been to the extent desired.

Holding of Lok Adalats and special sittings was one way of reaching out to the borrowers in an effort to settle the claims.

He pointed out that this was not something new to Tamil Nadu and the Madras High court has been conducting Lok Adalats in an effort to ensure speedy settlement of cases. The Chennai DRT had also conducted 13 Lok Adalats that resulted in the recovery of more than Rs 48 crore.

Mr Chaturvedi said in Tamil Nadu so far more than Rs 1,200 crore has been recovered through the initiatives of the DRTs. While DRT (II), Chennai which was established about three years ago has helped recover more than Rs 200 crore, the DRT (I), Chennai has assisted in the recovery of about Rs 960 crore.

Ms Justice A. Subbulakshmy, Chairperson, Debts Recovery Appellate Tribunal, southern region, Chennai, said the upholding of the Constitutional validity of the Securitisation Act by the Supreme Court has given an impetus to the important task of recovery of dues to the financial institutions in the country.

Mr A. Vijay Kumar, Presiding Officer, DRT-II Chennai and Presiding Officer in-charge, DRT Coimbatore, said there has been a demand from the banks and the borrowers to have a Lok Adalat as well as a Settlement Programme in Coimbatore and the special sitting being held here marked the beginning of such an initiative.

He said after the sitting, the DRT proposed to hold monthly sittings in Coimbatore in which the other banks also would participate. Four banks — Indian Bank, IOB, SBI and State Bank of Travancore — participated involving around 90 borrowers.

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