The Economic Times - - The Jaitley Interview -

we are go­ing to amend the Sarfaesi (Se­cu­ri­ti­sa­tion and Re­con­struc­tion of Fi­nan­cial As­sets and En­force­ment of Se­cu­rity In­ter­est) and DRT (debt re­cov­ery tri­bunal) laws in or­der to make re­cov­er­ies faster. So they have to come in tune with the bank­ruptcy law. I am en­deav­our­ing to in­tro­duce it in this ses­sion. Ad­di­tion­ally, we had a meet­ing of state fi­nance sec­re­taries so that states start spend­ing right from first quar­ter and spend­ing is not merely dis­tri­bu­tion of cheques. Spend­ing is ac­tu­ally into agri­cul­tural sec­tor, so­cial and in­fra­struc­ture sec­tors.

The Bud­get had a strong ru­ral pack­age. How soon do you think its im­pact will be felt? Ir­ri­ga­tion will be the first to show its im­pact. Elec­tri­fi­ca­tion is be­gin­ning to show its im­pact. Swachh Bharat in schools is be­gin­ning to show some im­pact. Our fi­nan­cial in­clu­sion schemes have seen a thun­der­ous im­pact.

Stress con­tin­ues in the banking sec­tor. Pub­lic sec­tor banks (PSBs) are not com­fort­able opt­ing for hair­cut through one-time set­tle­ments… There are two things tak­ing place. We have to cre­ate both po­lit­i­cal and eco­nomic en­vi­ron­ment for banks to have a healthy re­cov­ery. And that can’t take place in an en­vi­ron­ment of sus­pi­cion. Busi­ness losses caused the twin bal­ance sheet prob­lem. So you have to ad­dress the sec­tors and re­verse the cy­cle. I think that’s more im­por­tant. And, banks must have flex­i­bil­ity to set­tle. And, set­tle­ments can’t be looked at with sus­pi­cion. So, how do you em­power bank man­age­ments to go in for one-time set­tle­ments? I think by amend­ing the Pre­ven­tion of Cor­rup­tion Act and cre­at­ing an om­buds­man-like mech­a­nism. These both to­gether will help. This would be a body which would cush­ion bank of­fi­cials on set­tle­ments.

In the King­fisher Air­lines loan case, Vi­jay Mallya hasn’t ap­peared be­fore the En­force­ment Direc­torate (ED). What are the op­tions on the ta­ble go­ing for­ward? ED will de­cide. I think all these bod­ies, whether it is the ED or the bankers, they will de­cide strictly and in ac­cor­dance of le­gal pro­vi­sions. Banks will go ahead and de­cide what­ever is in the larger in­ter­est of the


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