The Supreme Court on Thursday declined to act on a plea by BJP MP Subramanian Swamy on framing guidelines to deal with the menace of Non Performing Assets in the banking sector, saying this was a policy matter falling in the domain of RBI and the government.
A bench of Justices D Y Chandrachud, Vikram Nath and B V Nagarathna, said, "It is not possible for the court to tread into policy domain."
The court, however, allowed Swamy to make a representation before the RBI which can take a considered decision on making any changes in the extant guidelines.
As Swamy argued the matter, the bench asked him, "How do we frame guidelines so that non-performing assets do not occur? It's for the legislature to decide and act".
Swamy maintained his plea dealt with cases and methods by which a large number of NPAs would not occur again, which would be beneficial for everybody.
He said the court can set up a committee in the matter.
The court, however, pointed out the RBI and finance ministry have been issuing guidelines, and policies are framed so that NPAs do not occur.
"There is no need for us to interfere in all of this," the bench noted.
Swamy said that the RBI was maintaining extraordinary secrecy in connection with information on NPAs. When a bank closes down, people run from pillar to post for their funds, he said.
He said there have been judgements by the top court which stated how courts should not have taken a hardline position that it cannot enter this domain.
Disposing of his plea, the bench, for its part, said, "We can say ultimately RBI can look at your material and take a decision at the policy level. But constituting a committee etc cannot happen".
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(Published 07 October 2021, 09:35 IST)
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