Business Mantra: Faridabad
Vijay Mallya episode should be an eye opener for everybody, may it be Banks, Government, Courts, CBI, Media.
It is a welcome move by SEBI to debar willful defaulting companies and its willful defaulting directors:
• From raising money from public via public issues, bond etc.
• Taking control over Boards of Listed Companies and positions in these boards.
• Appointing market intermediaries for mutual funds and brokerage firms.
Almost every Bank has published the list of their Willful Defaulters and from every Bank, we can SEE “VIJAY MALLYAS” in those lists involving LACS of CRORES of PUBLIC MONEY.
Government’s announcement to bring back foreign funds struck up in Swiss Banks may not yield such results as recovery from Willful Defaulters can bring fruitful results.
Now the question arises, what would be the next step of Banks, Government, Courts, investigating agencies in this regard to safeguard Lacs of Crores of the public money struck up with these willful defaulters?
If the Government of India is sincerely interested to get back the funds involved in this area, a High Level TASK FORCE should be appointed comprising the following:
1. Ex-officio Chairman/CEO and Executive Directors of the all Banks
2. High Level Recovery Team from each and every Bank.
3. Secretary/Additional Secretary level officers from Ministry of Finance
4. Officials from Income Tax Department.
5. Officials from Central Bureau of Investigation(CBI)
6. Officials from Enforcement Directorate (ED)
7. Officials from Central Vigilance Commissioner (CVC)
8. Retired Judges from Supreme Court of India
9. Members from SEBI
To start with this “HIGH LEVEL TASK FORCE” may be handed over the recovery process of all NPA Loans involving Rs.100 Crores and above. Certain percentage of the amount thus recovered may be given to this “HIGH LEVEL TASK FORCE” as remuneration for managing their expenses incurred for recovery.
With the joint and concerted efforts of all the above and taking every possible recovery steps, NPA recovery from Willful Defaulters is possible to the extent of the funds involved. These steps can set very good example for the borrowers and bring a kind of fear psychosis in their minds to be vigilant and careful with regard to the bank Loans.