Supreme Court Sets Aside BJP MP Subramaniam Swamy's Plea On NPA Issue
The Supreme Court declined to entertain BJP MP Subramaniam Swamy's petition on the acute problem of voluminous NPAs that have jolted the banking sector one after the other in recent years.
The veteran politician had knocked on the doors of the Supreme Court with a prayer to frame guidelines to curb the meteoric rise in NPAs. He believes India's central bank is keeping extraordinary secrecy with regard to NPAs. He has categorically objected to the practice of granting loans against shares.
While granting Swamy the liberty to make a representation to RBI to amend the existing guidelines, the Supreme Court was not keen to tread into RBI's domain. Bringing changes in the existing framework is the prerogative of RBI and the apex court refused to get into a policy-making exercise.
Swami has been actively speaking out against the menace of non-performing assets that have plagued the Indian economy in the last few years. According to a separate petition filed by the senior politician against RBI officials, India's top 10 corporate houses are single-handedly responsible for creating NPAs to the tune of 12 lakh crores.
Add to this, the banking frauds and corporate scams already witnessed by India's resilient economy.
