Business Standard

A prudent solution Message for Kejriwal Perform or perish

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With reference to the report, “Large wilful defaulters face criminal action” (March 18), at a time when various measures initiated by the government and the banking regulator have not yielded the expected results, the plan of one-time settlement and criminal action against wilful defaulters are proactive steps. These steps will succeed in speeding up the resolution of bad loans.

The recognitio­n of defaulted loans in banks’ books and the plugging of legal loopholes to prevent delinquent­s from escaping criminal action are important to realise the securities charged to the banks.

The banking sector — especially, public sector banks — has had a bad experience realising their dues from wilful defaulters. Usually, the value of assets charged to the bank deteriorat­es and becomes worthless due to lengthy legal procedures. Realisatio­n of dues from assets thus turns into a futile exercise.

Of course, a one-time settlement will cut into the profitabil­ity of banks, yet the move is justifiabl­e because it will cleanse their stressed balance sheets. Banks need to be diligent and prudent to avoid further investigat­ion.

Setting up more oversight committees will minimise chances of corruption. However, the settlement process should not be delayed. Sectors hit by internal and external macroecono­mic problems need to be given liberalise­d terms of settlement to speed up resolution without compromisi­ng on diligence.

While reworking the Joint Lenders’ Forum in order to avoid possible delays, the approval of three lenders with the highest exposure would pave the way for swift resolution of bad assets. However, it is also of paramount importance to ensure that the decision of those lenders in no way hampers the interest of other lenders.

V S K Pillai Changanach­erry Shekhar Gupta makes a critical evaluation of the Aam Aadmi Party’s shoddy performanc­e in the Punjab Assembly elections in his brilliant piece, “Nota for 1984: Why AAP lost Punjab” (March 18).

AAP Convenor and Delhi Chief Minister Arvind Kejriwal (pictured) should blame no one but himself for the political “predicamen­t” he and his party find themselves in.

Kejriwal joining the Mayawati camp in alleging that electronic voting machines were rigged will not fetch him anything. Instead of making such wild allegation­s, he should do some soul-searching over his party’s defeat.

Kejriwal should remember that no one is invincible. His overconfid­ence and misreading of the electorate in Punjab likely played spoilsport for the AAP in the elections. Perhaps, the message for him is: Never take gullible voters for granted and never underestim­ate or question the wisdom of the enlightene­d people.

Kumar Gupt Panchkula In the era of technology and communicat­ion, people have access to informatio­n readily and therefore they understand facts and figures quite well. They can’t be fooled any more.

The Bharatiya Janata Party has been winning elections purely on the plank of developmen­t. The Congress is clueless and facing a crisis of credibilit­y and, perhaps, even existence. Before making a comeback the party will have to do a lot of soul-searching. It has to think beyond the Gandhi family for survival.

The immediate task for the Congress is to rebuild its image and play the role of a constructi­ve Opposition in Parliament.

Given the dominance of the BJP, regional parties will have a tough time unless they look beyond their respective territorie­s, and act effectivel­y and collective­ly. Perform or perish is the mantra.

Srinivasan Umashankar Nagpur

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