Rewarding Non Performance

Rewarding Non Performance
It is reported that the Income Tax department has advised officers to step up prosecution of wilful defaulters to ensure much needed revenue. They are going to embark on search and survey operations.
This author feels that the sleuths need not spend so much energy on search operations. The government has enough defaulters- be it money stashed abroad or NPA’s (Non Performing Assets) of Banks. We will dwell upon the NPA aspect.
 NPA’s in Banks
Lot of time and effort is spent in annual exercise of Budget in our country. All the Babus pat their backs after presentation of annual Budget  for the best  possible trade-off for the nation.  Indeed they make their own job appear difficult. But subsequently they make their own lives comfortable and that of the common man difficult by wilfully conniving to generate  NPA’s in Banks.
The Banking sector boasts of having Rs 193,194 crores of NPA’s as on 31st March2013 detailed below:                 

Banking Sector Rs Crores
Public Sector Banks 164,462
Private Sector Banks 20,762
Foreign Banks 7970
TOTAL 193,194
Source-Deptt of Banking Supervision,RBI
 Wilful Defaulters
All India Bank Employees’ Association (AIBEA), released a list of  top 406 defaulters against whom banks have initiated legal actions. These 406 bad loan accounts are in 24 banks, totalling Rs.70,300 crore as on March 31, 2013.
The leader of this list is  Mr Vijay Mallya’s Kingfisher Airlines- Rs.2,673 crore.
As a depositor, the public have every right to know who these defaulters are. There is no Swiss Banking Law and so called international relation coming in between. Every Bank Branch should exhibit their names with photographs just as for criminals in some Police Stations. RBI should direct the Banks to comply with this. After all, they are the watchdog of Banking sector.
While Mr Vijay Mallya keeps busy going around with his alcohol business, some are lamenting that the Banks should convert these loans to Equity ! The jargon is –restructuring / reconstruction of loans / assets. For a common man it means forgiving and forgetting.
 These advocates also feel  that this is the only way to save jobs of unfortunate employees . Thus attempts are made to further gobble up public money under whatever pretext possible. Such is the greed.
Mr Subrata Roy of Sahara  trying to raise Rs 10,000 crores  to get away from the mosquitoes of Tihar Jail  is one of his own kind. Where do you classify such a default ?
By not initiating swift prosecution against such wilful defaulters, the state is rewarding creation of Non Performing Assets.
The tax officials already have these lists. Then why make another list? Is it so that names in the list are hot potatoes? In that case we can have a list of lists ! Of course- details thereof to remain confidential.

More By  :  Navin Chandra Mishra

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Comments on this Blog

Comment Navin You are right. The tax department already has a long list of defaulters totalling thousands of crores of rupees. But they don't have the courage to go after these people. The people doing financial manipulations are not considered criminals. To my mind these are the people responsible for keeping poor people poor. These people must be brought to justice. I appreciate your work and thoughts Navin. Even the smallest effort in the right direction counts. We must realize what we are passing on to our generations.

Arun Sharma
08-Aug-2014 10:06 AM

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