Banking News

Banks to conduct performance review of empanelled advocates


Banks will conduct periodical reviews of the performance of empaneled advocates, and ensure the presence of their officers at all the hearings of their respective cases before judicial forums, the finance ministry said in a statement.

These steps are part of the measures decided to enhance the efficacy of debt recovery tribunals (DRTs) for expeditious debt recovery. “DRTs and DRATs to take all possible steps to reduce pendency at various stages through strict monitoring,” the ministry noted in a statement, adding that banks have been asked to rationalise the assignment of cases to the empaneled advocates, taking into account their performance.

Financial services secretary Vivek Joshi held a meeting with all stakeholders on Saturday, including the chairpersons of Debt Recovery Appellate Tribunals (DRATs) and presiding officers of Debt Recovery Tribunals (DRTs).

“Several suggestions regarding changes and amendments in the Debt Recovery Tribunal Regulations, SARFAESI Act and RDB Act discussed to make the process of recovery more efficient,” the statement noted, adding that the meeting was attended by senior executives of both public and private sector banks and officials from the Insolvency and Bankruptcy Board of India (IBBI).

Banks and financial institutions will reconcile cases that are pending in DRTs and DRATs but have already been settled, the statement noted.

The ministry noted that stakeholders will look to leverage the under development e-Auction platform for listing and auction of properties of banks and financial institutions under the provisions of various Acts- SARFAESI Act, 2002, RDB Act, 1993 and IBC, 2016.

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