Centre indicates changes in NPA Act

He felt that cost accountants could do a better job in the ‘‘real’’ costing of assets and liabilities, since chartered accountants often certify the accounts without getting into the ‘‘realities’’.

Adsul said chartered accountants were like those doctors who issue medical certificates on the demands of patients who have to submit certificates to their organisations to get leave. ‘‘(The) same job is done by majority of chartered accountants,’’ who, otherwise, should have gone through documents and the supporting ones, he added.

To reduce NPAs, which is over Rs 55,000 crore in the banking industry, the centre had passed Securitisation and Reconstruction of Financial Assets and Security Interest Act. The Act later got involved in legal wrangles before the Supreme Court, on the issue of Mardia Chemicals.

Observing that the practice of fixing the responsibility (for bad loans) had been on the management alone, Adsul said: ‘‘We will have to go for the liabilities of bankers and chartered accountants too’’.