Efficiency has to be introduced into the debt recovery procedures in our country as managed delays in debt payments hurts investment environment.
Addressing a seminar on debt recovery trends, Jaitley said that recovery is not a judicial or quasi judicial procedure when endless chances have to be given to people to defend their cases.
“Because if natural justice is carried on to unnatural extent the litigation will become unending and therefore efficiency has to be introduced into the recovery procedure as far as the defaulting parties are concerned,” said the Finance Minister
Batting for a faster resolution of debt recovery cases, Jaitley said that a managed delay in debt recovery hurts the larger investment environment of the country as bank’s money is blocked by defaulters. He said such actions prevent banks from funding genuine people who can utilise the money for productive purpose.
Observing that domestic investment continues to be a challenge, Finance Minister Arun Jaitley on Saturday said asked private sector to invest to compliment government’s efforts to boost growth.
Speaking at function in Gurgram, the Minister said called upon the banking sector to support corporate to propel growth.
“Indian private sector needs to expand in a big way. It needs to invest and that’s when all engines of economy (will) start firing,” Jaitley said
He also spoke of liberalisation of Foreign Direct Investment policies because of which India has emerged as a preferred destination of foreign investment.
“Foreign investors are getting far greater returns on their investment here than in any other country,” he said.
“Public investment and foreign capital on which the economy is firing are intact… domestic investment is still a challenge.”
Jaitley further said there is a “silver lining” visible with festive purchases, indicating upturn in rural and urban demand, but domestic investment will have to pick up in a big way for which banks need to do their bit by supporting corporates and thus boosting growth.