A PIL filed before SC raised the issue of technical write off of NPAs and economic harm caused by loan waivers. The objective of the writ petition is to stop the misuse of public money in the hands of political parties and to stop technical write off of NPAs by Banks.
The petition raised the contention that Political Parties attract mass voters by raising the concern of farmer’s debts. The manifestos of these political parties have the provision of loan waiver. The loans are waived off by paying from the public funds and not from the political party’s private funds. The petition further avers that the country lacks a perfect agricultural model and it needs to be reanalyzed and reincorporated. The petition also contended that schemes like Minimum Support Price are old theory based schemes and are not helping farmers come out of poverty.
The petition avers that the banks are the hands of an economy and hold money of people and hence the transparency shall be induced for the general public awareness. The petitioner is against forced NPAs to waive loans, which is misuse of public money. The petition cites a news report on the official RBI website which infers from the Fiscal Deficit the poor and degraded monetary and economic conditions of the State Governments.
The petition further cites a news report dated 07.02.2017 on the official website of Indian Express in which the former RBI deputy Governor mentions that these technical write off‘s creates non transparency and brings wrong doings. Hence, the petition prays for restrain on banks from technical writing off of NPAs so that the true and exact financial conditions of the banks cannot be camouflaged, not giving Banks any allowable provision or other in percentage to their Non Performing Assets (NPA) which reduces their tax liabilities, stopping the the System of waiving of loans, bar from permission to political parties to offer loan waiving schemes or any other monetary schemes in their election manifestos and The formulation of such an agricultural policy which can make farmer financially prosperous.
The petition will be heard on the upcoming Monday by bench headed by Justice S.A. Bobde.