A prudent solution Message for Kejriwal Perform or perish
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