The three debt recovery tribunals (DRTs) in Maharashtra have registered a drastic fall in the number of fresh defaulter cases during the nine months of the current fiscal.
Following the circulation of the draft Securitisation Bill by the government, banks and institutions did not approach the DRTs in anticipation of a quick Parliament approval to the Bill.
DRT-1, which effected recoveries of over Rs 1,000 crore over the last three years from defaulters, recorded a dip of more than 50 per cent in the number of cases filed during April-December this fiscal.
According to statistics available, DRT-1 that had 850 cases (original applications) filed before it in 2001-02 has recorded only 350 cases filed up to September 30, 2002.
Similarly, DRT II which had nearly 900 cases filed before it in the nine months of the last fiscal has registered only 350 cases in the three quarters of this fiscal.
The situation in the DRT III is not different, although exact figures were not immediately available.
However, recoveries effected through the attachment of properties ordered by the three courts of the DRT in the three quarters of the current fiscal have witnessed a sharp rise.
While orders by the presiding officer of DRT-1 had resulted in a recovery of Rs 40.17 crore in the three quarters of the last fiscal ended December31, 2001, Rs 87.77 crore has already been mopped up through the attachment of properties of defaulting debtors in only the first eight months of the current fiscal (up to September end 2002).
The DRT-2 has effected a recovery of a whopping Rs 359 crore (as on October 31, 2002) by attaching properties of corporates and other debtors.
What is significant is the fact that, despite the deluge of cases before any of the three DRT courts, fast-paced proceedings have resulted in large recoveries of debts defaulted upon by errant companies even though each of the three courts has a sanctioned staff of 30.
In reality not more than 24 staff are available with any of the courts at any given point of time.
