PTI
New Delhi
Amid furore over Vijay Mallya loan default matter, the government Wednesday introduced in the Lok Sabha a Bill which provides for expeditious disposal of debt recovery applications pending before tribunals.
The 'Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016' -- introduced by Finance Minister Arun Jaitley -- was immediately referred to a Parliamentary Joint Committee.
The Bill seeks to amend provisions in as many as four legislations, including the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
The legislation proposes to give RBI powers to regulate asset reconstruction companies, priortise secured creditors in repayment of debts and provide stamp duty exemption on loans assigned by banks and financial institutions to asset reconstruction firms.
Around 70,000 cases are pending in Debt Recovery Tribunals and the proposed amendments are being aimed to “facilitate expeditious disposal of recovery applications”, as per the Bill's Statement of Objects and Reasons.
The government has come up with this legislation at a time when there is mounting concern over loan recovery in view of the Mallya case where the loan default is to the tune of over Rs 9,400 crore.
Another proposal is to empower the central government to provide for uniform procedural rules for conduct of proceedings in the Debts Recovery Tribunals and Appellate Tribunals.
Both Houses adopted the motion for sending the Bill to the 30-member Joint Committee.
