Recovery Bank of India

M K Tayal
RBI gets more teeth – to do what! To bargain, perhaps
A move which is no more wise than repetitive, the government has given powers to the Reserve Bank of India to act directly against loan defaulters.
While the banks already have these powers, the promulgation of the Banking Regulation (Amendment) Ordinance by the President, which empowers the RBI to act directly against top loan defaulters, is basically catching the nose otherway round, second time over – sheer waste of effort.
If you have taken a house or a car loan, the banks are ready to take back the said property in case of even missing one or two instalments, then how come such huge loans are given and never recovered.
Rather the government should be taking action against bank officials who have given uncorroborated, unsubstantiated exaggerated loans which have not been recovered. Since most cases of high-end loans would have the blessing of top officials and politicians, it was unlikely the government would have taken or take action against officials in future.
So what is the latest Ordinance signed by President Pranab Mukerjee about?
The Cabinet had recommended the ordinance empowering the RBI to instruct banks to act against top 20-25 loan defaulters as part of a series of steps aimed at helping lenders get bad debt off their books.
Union Finance Minister Arun Jaitley said a list of some of the stressed assets is already with the RBI and it is looking into it. “Present status quo cannot continue. And the present status quo is that not much was moving," he said.
On the need for an ordinance, he said RBI required to be empowered in relation to specific stressed assets. Sale of assets, closure of non-profitable branches, reduction of overhead and business turnaround initiatives will be part of resolution process, he said.
Although the government had initiated steps to act against defaulters, they were perceived to be inadequate to restore the condition of the banks, which had been reluctant to work out settlement packages.  So now will the RBI work out settlement packages? Yes, it seems.
The RBI may, from time to time, issue directions to the banking companies for resolution of stressed assets. The regulatory body can directly initiate action against defaulters.  This goes against the basic nature of the bank. It is a policy bank. Now it is being made a recovery bank also.
The RBI may also form committees with members it can choose to appoint to advise banks on the resolution of stressed assets.
As per the ordinance, the government may authorise the RBI to issue directions to banks to initiate insolvency proceedings against defaulters under the bankruptcy code. It will help accelerate the resolution of bad loans worth Rs 9.64 trillion ailing the Indian Banking system.
Earlier, banks couldn't invoke the insolvency and bankruptcy code due to fear of being questioned. Remember, it was the fear of being questioned. Now the RBI directing banks to initiate insolvency will be a transparent and market-determined approach.
The CBI, ED and Income Tax Department have already begun action against major loan defaulters. But with the promulgation of the ordinance, loan defaulters will have a tough time ahead - especially those defaulters who take fraudulently take loans from banks and fail to repay the loans.
Several defaulters are likely to be arrested or have their properties being attached in the near future. Recently the agencies have acted against Vijay Mallya, who is accused of owing banks Rs 9,000 crore.
Similarly Vijay Chaudhry and Sanjay Jhunjhunwala have been arrested in the last 15 days.  Mallya was arrested in London, while Chaudhry and Jhunjhunwala have been arrested form Mumbai and Delhi, respectively.
Agencies have attached Vijay Mallya's properties worth Rs 900 crore, Zoom Developers's properties worth over Rs 100 crore, Century Group's properties worth Rs 110 crore, Surya Vinakay Group's properties worth  Rs 88 crore, and Winsome Diamonds's properties worth Rs 172 crore. 
The government has already instructed agencies to collect information about defaulters who fail to repay the loans. The money should be recovered through attachment and sale of their properties.
(With inputs from agencies)
http://thecorrespondent.in/story?id=9efcedde-aaf3-41c5-a112-934200b8984e

Will India Kill 50 Pakistanis

By M K Tayal

India crossed the Line of Control last year and operated in territory controlled by Pakistan, hitting world headlines. Now Pakistan is retaliating. Pakistan is increasingly crossing the line of control and attacking and killing troops. On May 1, Pakistani troops crossed into the Indian territory and killed two soldiers while third was  ‘critically injured’ and in hospital.

The two troopers - one of the army and another of BSF - were targeted. Head constable Prem Sagar of 200th Battalion of the BSF and Naib Subedar Paramjeet Singh of 22 Sikh Regiment of the army were killed and their bodies mutilated by Pakistani troops.  
Daughter demands 50 Pak heads
Traumatized with the news of her father's horrific death, daughter of Prem Sagar demanded '50 heads in return' of her father's life. "His sacrifice should not be forgotten, we want 50 heads in return for his life," said Saroj while consoling her mother. “I am proud of my brother that he sacrificed his life for the nation, but is it very heart-wrenching the way he has been beheaded by the Pakistan military," said Dayashanker, the brother of Prem Sagar.

Free hand to the Army - To do what? Wear Bangles!!!

According to sources, the Army has been given a free hand to deal with the situation. Ironically, under the Modi regime the Army has been given a free hand but news keep appearing about Pakistani misadventures. What is the army going to do about it? It remains to be seen. But the situation is getting more and more volatile. The army is under tremendous pressure to ‘perform’.

On May 1, Pakistani army provided cover with firing to 'border action team' personnel to attack and kill our jawans in the Krishna Ghati sector of Poonch district, the BSF said today. "Taking advantage of the firing from the Pakistan side, Pakistani forces attacked our jawans and mutilated their bodies," KN Choubey, BSF ADG Western Command, said. Choubey said the third jawan, who was injured in the attack, is in hospital. "Army and BSF will sit together to plan more steps in order to avoid further such incidents."

The incident in Krishna Ghati sector occurred when a joint team of the army and BSF had gone to check the veracity of an intelligence report that landmines had been planted by Pakistani troops on the Indian side. As they were looking for landmines, the patrol was taken by surprise by Pakistan's troops which had laid an ambush over 250 metres deep inside the Indian territory.

While the Pakistani troops attacked two forward posts with rockets and mortar bombs, Pak troops waited for their targets. The Indian army patrol came under fusillade of gunfire, resulting in the death of two soldiers. The Pakistani personnel quickly moved and beheaded two fallen soldiers, official sources said in New Delhi. It was still not known if landmines had indeed been planted in the area.

K K Sharma, the Director General of BSF met Union home secretary Rajiv Mehrishi and briefed him on the incident. "It was a pre-planed operation by Pakistan army. They had pushed in over 250 metres deep inside Indian territory and set up the ambush for a long period to carry out the attack," a senior officer said in Jammu. "Their target was a patrol party of 7-8 members, which had come out of a post," the officer said.

There have been several attacks in the past in which jawans have been beheaded or their bodies mutilated. On October 28, 2016, militants attacked a post and killed an Indian army soldier and mutilated his body close to the LoC in the Machil sector. In January 2013, Lance Naik Hemraj was killed and his body mutilated by BAT. It also beheaded Lance Naik Sudhakar Singh. Constable Rajinder Singh of the BSF suffered injuries in the attack. In June 2008, a soldier of the 2/8 Gorkha Rifles lost his way and was captured by BAT in Kel sector. His body was found beheaded after a few days.

By The Correspondent May 02 2017

http://thecorrespondent.in/story?id=a48943da-af2a-48e3-88b9-036d71ebd82c