Supreme Court Expresses Anger Over Banks’ Failure in Loan Recovery

The Supreme Court has strongly criticised banks for generously disbursing loans using taxpayers’ money while showing laxity in recovery efforts. The bench headed by Chief Justice Surya Kant and Justice V. Mohan raised concerns over alleged collusive arrangements between banks, asset reconstruction companies (ARCs), and borrowers.

The Court questioned the settlement of ₹1,537 crore dues for just ₹73.50 crore by public sector banks and termed the issue alarming. It observed possible misuse of public funds and issued notices to the Centre, RBI, and other authorities. The bench also called for a detailed examination of the functioning of ARCs and adjourned the matter for four weeks.