New Delhi: The Supreme Court on Thursday directed officials of the Union Finance Ministry to hold a meeting with officers of the Reserve Bank of India and others on August 10 in the office of the Solicitor-General to suggest measures for recovery of non-performing assets of public sector banks and financial institutions.

A three-Judge bench comprising Chief Justice Y.K. Sabharwal, Justice C.K. Thakker and Justice P.K. Balasubramanyan fixed the date of the meeting while criticising the Finance Ministry for not holding discussions as directed by the apex court in its orders in August 2005 and December 2005. The Bench was hearing a petition filed by Common Cause highlighting the failure of the government to take steps to recover nearly one-lakh crore rupees of NPAs.

In August 2005, the court had said that it would be appropriate that, in the first instance, the suggestions of the petitioner were discussed by the counsel for the petitioner with the Additional Solicitor-General, who represented the Union of India, counsel for the Reserve Bank of India and the senior officers of the Government and the Reserve Bank of India. Before meeting to discuss the issues, Prashant Bhushan, counsel for the petitioner was asked to give suggestions and accordingly he had filed them.

In December 2005, it was brought to the notice of the court that despite the suggestions no meeting took place. The court had then directed that the meeting should take place expeditiously and an affidavit was filed in this regard.

When the matter was taken up on Thursday Mr. Bhushan submitted that bank officials in connivance with defaulters deliberately did not declare the amount of loan as NPA and the defaulters continued to enjoy at the cost of public money without incurring any liability to repay the loan. He said that the amount of NPA had assumed alarming proportions eating into the foundations of the economy as well as the country's banking system.

The Bench said, "The meeting is only for the benefit of the government. This [NPA] is not a priority for them." Taking note of the delay the Bench in its brief order said that despite the order passed eight months ago nothing had moved and the Ministry of Finance had not yet filed the affidavit. The Bench pointed out that the December 2005 order itself had recorded the delay in holding the meeting the purpose of which was to strengthen the hands of public financial institutions to tackle the menace of NPA, which was increasing.

The Bench directed that the meeting should take place at 4.30 p.m. on August 10 in the office of the Solicitor-General and an affidavit be filed on the outcome of the said meeting by the end of August.

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