Senior advocate of Supreme Court, Geeta Luthra, while speaking at the NewsX NPA Conclave on Tuesday on being asked about where does the law stand in cases of NPAs, is it still work in Progress by NewsX anchor, said that “there are 2 parallel laws working in NPA cases, the criminal law and civil law and when it comes to banking frauds, the question is do we only punish people or get the money back?”
She added that banking frauds in the country are because of system failure not the failure of the law, though she said that the new Insolvency and Banking Code (IBC) could prove to be key reform towards resolution of NPAs in India.
Luthra advocated stringent laws for banking frauds but at the same time said that law should not hinder business or the banking industry to thrive.
The senior lawyer said that the major problem in the resolution of NPA is that on one hand, we are not investment friendly on the other we assume every borrower is a thief. She also pointed out the role of the judiciary and said it’s crucial for courts to be critical of policies and when they are wrong.
Another Senior Lawyer, Suman Khaitan said that in order to be competent at the global level we have to work on the cost of logistics. She said that in her view, regulations of the bank make the ecosystem in competitive.
Khaitan blamed the red-tapism for delays in implementation of policies. She said, “there is a lot of delays, you have to take so many approvals which you have to take after the loan is sanctioned.”She also blamed the banking system for the current scenario and remarked that they were playing with public money for private good.