What Government should do to control Bank Defaulters
Name: CA Naresh Jakhotia
– The Author is practicing Chartered Accountant and currently associated as a partner of M/s. SSRPN & Co., Nagpur.
What Government should do to control Bank Defaulters:
At many occasion, defaulters lives a heroic life and inspire others to follow their footsteps.
They flew the country and leaves a painful idea for the genuine citizens of the country. Be it Nirav Modi or Vijay Mallaya, the citizens are feeling cheated.
Here are the few suggestions. Government should float a separate code for the citizens availing the bank loan.
Let the defaulters feel that they are defaulter and let the genuine borrower not get the feel of being cheated.
1. The passport of all the defaulters / NPA Account holder above say Rs. 10 Cr may be seized and kept in the custody of the lending bank.
Stay in Five Star Hotels & Holiday destinations be banned for such chronic defaulters.
2. The person should be banned from attending any function as a Chief Guest or be banned to sit on the Dias.
3. Use of public facilities like railway, flights etc may be restricted except for business purposes.
4. Weekly and Monthly reporting to the bank May be made mandatory.
5. Spending toward personal expenditure in the family marriage, Birthday etc programme should be made mandatory. The reporting requirement should be advance reporting, well months in advance.
6. The meeting of the defaulters with the bureaucrats and politicians should be a public documents.
7. The rating by bank “Intentional defaulter” be displayed at the home and office premises if it is so asked by the banker.
Some of this suggestions can help create the better business atmosphere and will promote genuine culture amongst the citizens. After all, it’s a question of Tax Payer’s Public Money.
– CA Naresh Jakhotia