Conference on Debt Recovery Enhancements chaired by DFS Secretary Dr. Vivek Joshi

 

New Delhi:   Dr. Vivek Joshi, Secretary of the Department of Financial Services (DFS), led a crucial Conference of Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) in New Delhi today. The conference brought together representatives from the public and private sectors, including senior officials from banks, the Indian Bank Association (IBA), and key figures from the Ministry of Finance and the Insolvency and Bankruptcy Board of India (IBBI).

The meeting aimed to foster discussions on optimizing the efficiency of DRTs for the swift recovery of debts. The key points discussed during the conference included:

1. Reducing Pendency: DRTs and DRATs were urged to take necessary measures to reduce the backlog of cases at various stages through stringent monitoring.
2. Regulatory Amendments: Several proposals were tabled for changes and amendments in Debts Recovery Tribunal Regulations, SARFAESI Act, and RDB Act, aiming to streamline the debt recovery process and make it more effective.
3. Advocate Performance Review: Banks were advised to conduct periodic reviews of the performance of empanelled Advocates, with a focus on rationalizing case assignments based on their performance.
4. e-Auction Platform: The discussion included leveraging the under-development e-Auction platform for the listing and auction of properties owned by banks and financial institutions under the provisions of SARFAESI Act, 2002, RDB Act, 1993, and IBC, 2016.
5. Case Reconciliation: Banks and Financial Institutions were encouraged to reconcile cases that are pending in DRTs and DRATs but have already been settled.
6. Officer Presence: Banks were reminded to ensure the presence of their officers at all hearings related to their respective cases before judicial forums.

The conference marked a significant step towards enhancing the effectiveness of the debt recovery process in the country, with collaborative efforts from various stakeholders. The collective aim is to expedite the resolution of pending cases and foster a more efficient and transparent debt recovery system.