Delhi high court issues notice against writing off NPA
Delhi High Court has sent a notice to the government, responding to a writ petition against waiving of non performing assets or the NPAs of the banks. Court also requested a restrain on loan waiver schemes announced by various political parties in their election manifestos. In the petition, the advocate Reena N Singh has alleged that such waivers increases fiscal deficit and brings down country`s economy. The petition states that the loan waivers are misuse of public money due to forced Non Performing Assets or Bank NPA`s in the form of Loan waivers and offering of monetary schemes by political parties for attracting voters. According to the plea, the Petitioner has requested for the following: (a) The Banks should be restrained from TECHNICAL WRITING OFF OF NPA`s so that the true and exact financial conditions of the banks cannot be camouflaged. (b) The Banks should not be given any allowable provision or other in percentage to their Non Performing Assets(NPA) which reduces their tax liabilities. (c) The System of waiving of loans should be stopped. The Centre and State governments should not be permitted to reduce or waive off loans. (d) Political parties should not be permitted to offer loan waiving schemes or any other monetary schemes in their election manifestos. (e) The Central Government and State governments should formulate such an agricultural policy.