Forum writes to CJI against bank write-offs, seeks judicial probe

THE ‘BANK Bachao Desh Bachao Manch’ has written to the Chief Justice of India (CJI) and demanded a judicial probe into what it termed as a “humongous” write-off of bad loans.

The forum comprises sections of the civil society that primarily opposes the decision of the government to privatise nationalised banks.

“We are constrained and deeply perturbed to come across news that the Reserve Bank of India (RBI) has said in a Right to Information (RTI) reply to The Indian Express that the total bad loans written off by banks during the financial year amounts to Rs 2.09 lakh crore. We are of the considered opinion that the humongous write-off of bad loans tantamount loot of national exchequer by corporate willful defaulters. Perusal of available records will definitely reveal that banks are taking about 65-70 per cent haircuts in IBC/NCLAT mechanism, which reveal that the much touted fora for bad loan resolution have failed miserably. It also mentions that the banks recovered only Rs 109,186 crore from Rs 586,891 crore loans written off in the last three years, revealing that they could only salvage 18.60 per cent of the write-offs during the three-year period,” read a statement issued by the forum.