Narendra Modi government to set up six Debt Recovery Tribunals

NEW DELHI: The government today approved setting up of six new Debt Recovery Tribunals ( DRTs) to expedite cases pertaining to bad loans.

The Cabinet has cleared setting up DRTs in Chandigarh, Bengaluru, Ernakulam, Dehradun, Siliguri and Hyderabad, an official statement said.

"A study conducted through Indian Banks Association (IBA) in consultation with all stakeholders, recommended rationalisation of jurisdiction of some DRTs and setting up of six more DRTs," it said.

The number of cases pending with DRTs is over 50,000 and they are increasing, it said.

In the Budget 2014-15 speech, Finance Minister Arun Jaitley had said that the rising Non Performing Assets of Public Sector Banks is a matter of concern for the government.

He had mentioned the six cities where DRTs would come up. The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) was enacted to provide for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) for expeditious adjudication and recovery of debts due to banks and financial institutions.

After the enactment of the SARFAESI Act 2002, DRTs have got the Appellate jurisdiction.