NEW DELHI: Finance Minister Nirmala Sitharaman has accepted, in the Parliament that the process of recovering money by small depositors from bad debts is very crucial and lengthy, and there is a need to simplify it.

Responding to a query by NCP member Supriya Sule during Question Hour in the Lok Sabha on writing off bad loans and their recovery and issues faced by depositors, the finance Minster said: "Unfortunately, the processes of recovering money are so layered that by the time justice is sought to be delivered,  many of the small depositors are put to extreme pressure.

There is undoubtedly a need to consider ways to streamline the procedure without impairing fairness." Sule had asked for advice on how to speed up the process of enabling depositors' money refunds because it takes a while for depositors to receive their money back when problematic loans are written off.

In her inquiry, the NCP lawmaker also used the PMC Bank issue as an illustration of the predicament of average depositors.
Sitharaman replied in this way: "I completely appreciate that portion and I completely understand the feeling. It really does take a while. The procedures are extremely complex... Operational creditors and financial creditors are at the absolute bottom. These assertions are most likely never heard. It ought to be heard as well.

"It becomes challenging to ask the court to release a portion of what was attached when there are so many claims against, example, a property owned by a so-called wilful defaulter... I concur with the honourable MP that, regrettably, there are so many layers to the proceedings that, by the time justice is sought to be served, many of the small depositors are facing enormous challenges. There is undoubtedly a need to consider ways to streamline the procedure without impairing fairness."

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