The letter arrived along with hundreds of pages of demand for settlement of business loan against our firm. For small men this is a nerve wrecking event well not only banks loans from any source also is. The worst is money borrowed from private players who charge exorbitant interest and can thug whenever needed especially in case of default.
Though we cleared money the form owed to the Government many are not so fortunate. The banks are empowered through DRT to recover money through assets owned by the firm or else personal assets. But in spite of stringent laws the amount of NPAs (Non Performing Assets) are staggering.
A very massive number of default cases are pending in DRT pertaining to thousands of crores of Rupees. A very large number of cases will never see the end of the day for a meaningful recovery.
Why does this happening?
Well I am not a financial wizard hence the question is aimed at the Gurus. But even for the common man can figure out...
Corrupt practices used while disbursing loans.
Improper assessments of securities.
The lure of the lucre in case of eager financial institution.
Political proclivity in case of major players.
Did something like this happen in case of Mallya? Will we know?
Why are their no secure assets in place with the lending banks?
Hope the riddle is solved on some points. This is public money those responsible for lacunae should be brought to justice and timely.
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