Home > News > India > Delhi High Court issues notice on a writ petition against writing-off NPAs & waiving-off loans by banks
Mint
Mint

Delhi High Court issues notice on a writ petition against writing-off NPAs & waiving-off loans by banks

  • The banks should not be given any allowable provision or other in percentage to their Non Performing Assets(NPA) which reduces their tax liabilities
  • Political parties should not be permitted to offer loan waiving schemes or any other monetary schemes in their election manifestos

NEW DELHI : The Delhi High Court on Monday has issued notice to the government in a petition which has been filed by advocate, Reena N. Singh against the waiving of non-performing assets (NPAs) of the banks and has also requested a restrain on the loan waiver schemes announced by the political parties in their election manifesto. Singh has alleged that such waivers increases fiscal deficit and spoils the country’s economy. She had earlier filed the petition in the Supreme Court which was dismissed as withdrawn.

“That the present petition is against the misuse of public money due to forced Non Performing Assets (Bank NPA’s) by government in the form of Loan waivers including Farm/Agriculture loan and writing off of Bank NPA’s and offering of Loan Waiving and offering of monetary schemes by political parties for attracting voters for their political motives.

The political parties whether in power or in opposition should not be allowed to manipulate public funds for their political motives to attract a section of mass voters or vote banks at the cost of public funds which belongs to country’s. The Practice of Waiving of loan by Banks on the instructions of the State or Central government and the Technical writing off of Non Performing Assets (NPA’s) should be completely stopped and refrained as this practice is adversely affecting the Economy. That this petition is against the misuse of public money due to forced Non Performing Assets (Bank NPA’s) by government in the form of Loan waivers including Farm/Agriculture loan and writing off of Bank NPA’s and offering of Loan Waiving and offering of monetary schemes by political parties for attracting voters for their political motives.

The political parties whether in power or in opposition should not be allowed to manipulate public funds for their political motives to attract a section of mass voters or vote banks at the cost of public funds which belongs to country’s. The Practice of Waiving of loan by Banks on the instructions of the State or Central government and the Technical writing off of Non Performing Assets (NPA’s) should be completely stopped and refrained"- reads the petition.

According to the plea, in order to ensure the good economic condition of the country by reducing fiscal deficit and improving economic condition of farmers along with the majority of citizens of our esteemed country the Petitioner humbly requests for following:

(a) That the Banks should be restrained from TECHNICAL WRITING OFF OF NPA’s so that the true and exact financial conditions of the banks cannot be camouflaged.

(b) The Banks should not be given any allowable provision or other in percentage to their Non Performing Assets(NPA) which reduces their tax liabilities.

(c) The System of waiving of loans should be stopped. The Centre and State governments should not be permitted to reduce or waive off loans.

(d) Political parties should not be permitted to offer loan waiving schemes or any other monetary schemes in their election manifestos.

(e) The Central Government and State governments should formulate such an agricultural policy which can make farmer financially prosperous and stable with a bright future and increases his interest in agriculture and farming sector.

The next date of hearing is August 19. Petitioner is represented by advocate Rekha Rathi.

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaper Livemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

Close
×
My Reads Logout