It is duty of legislature: SC turns down Subramanian Swamy’s plea for guidelines for NPAs


New Delhi, Oct 7 | The Supreme Court on Thursday declined to entertain a plea by MP Subramanian Swamy seeking framing of guidelines to deal with the menace of NPA in the banking sector, saying, “It is the duty of the legislature” and a policy matter, which should be decided by the government and RBI.

However, the top court allowed Swamy to make a representation before the RBI.

A bench headed by Justice D.Y. Chandrachud and comprising Justices Vikram Nath and B.V. Nagarathna told Swamy, who argued in-person, “How do we frame guidelines so that non-performing assets (NPAs) do not occur? It’s for the legislature”.

Swamy contended that his plea deals with cases and methods by which a large number of NPAs do not occur again and added that this will be beneficial for everybody. He added that the court can set up a committee in the matter, and insisted “we can make out a case.”

Justice Nath said 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 argued that the RBI is maintaining extraordinary secrecy in connection with information on NPAs, and added that when a bank closes down, people run from pillar to post for their funds.

He further contended that judgments referred in the petition along with others, which states how courts haven’t taken a hard-line position, that it cannot enter this domain.

Justice Chandrachud 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”.

Swamy’s plea stated that it is appropriate for this court to constitute an expert committee for necessary guidelines. The bench said: “In the matter of this nature the reliefs which have been sought are core issues of policy which pertain to the domain of expert bodies such as RBI”.

The bench added that it is not possible for the court to tread into policy domain.

The bench, in its order, said: “We leave it open to the petitioner to submit a representation or the plea itself as a representation to RBI, so that a view can be taken so that any guidelines be duly modified to address the grievances. Plea is accordingly disposed of.”

Source: IANS

Next Story

Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal


Please enter your comment!
Please enter your name here