Plea in SC against NPA write-offs

New Delhi, April 19

As political parties promise farm loan waiver during the poll season, an advocate has moved the Supreme Court against governments writing off non-performing assets (NPAs) and waving off farm loans, contending it adversely affected the economy and amounted to transferring taxpayers’ money to defaulting borrowers.

Petitioner Reena N Singh sought a direction to the Union Ministry of Finance, states and union territories to restrain banks from writing off NPAs and waving off farm loans as such decisions led to increase in fiscal deficit. She urged the court to ensure fair use of public funds which belong to the country. The petition is likely to be taken up for hearing next week. — TNS