New Delhi: The Supreme Court has rapped the Ministry of Finance over the non performance of the Securitisation Act.
The Act was passed in 2002 to curb the huge amount of bad debt or Non Performing Assets (NPA) of public sector banks.
The Apex Court has asked the ministry to hold meetings in a week's time to check out what is being done on bad debts, that is now estimated at over Rs 1 lakh crore.
The Act had armed banks and financial institutions with powers to take punitive action against the defaulters, and also attachment of their properties.
Financial institutions had initiated legal proceedings against 15,000 companies for recovery of loans worth Rs 20,000 crore.
But industry watchers say the act has helped the banks reign in the growth of NPAs.
Meanwhile Special Secretary Vinod Rai said that the order to hold the meeting is for the Solicitor-General and not for the Ministry.
The meeting is scheduled to take place with the Ministry and petitioners on August 10.
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