SC refuses to entertain plea of BJP MP Subramanian Swamy for guidelines to check rising NPAs

A Supreme Court bench of Justices DY Chandrachud, Vikram Nath, and BV Nagarathna, however, allowed Subramanian Swamy to make a representation before the RBI which may consider making changes in the appropriate guidelines.

New Delhi:The Supreme Court on Thursday refused to entertain a plea of BJP MP Subramanian Swamy seeking to frame guidelines to check the menace of ever-rising Non Performing Assets in the banking sector saying it is a matter of policy and falls in the domain of executive and Reserve Bank of India.

A bench of Justices DY Chandrachud, Vikram Nath, and BV Nagarathna, however, allowed Swamy to make a representation before the RBI which may consider making changes in the appropriate guidelines.

“How can we frame guidelines for the ever-rising NPAs. RBI has issued guidelines from time to time. It is not possible for the court to tread into the domain of the executive,” the bench said.

At the outset, Swamy, who appeared in person, said that his petition deals with the issues of ever-rising NPAs in the banking sector, and this court should constitute a committee that would suggest necessary guidelines to check the rise in NPAs.

The bench said that from time to time the government and the RBI have both issued guidelines on the issue.

Swamy said that does not bar the court from constituting a committee and added that RBI is maintaining extra-ordinary secrecy with regard to NPAs.

He said that when the bank closes down, people have to run from pillar to post.

The bench disposed of the petition and granted liberty to Swamy to make a representation to RBI seeking modification of the existing guidelines and also the specific issues with regard to loans against shares.

It said that the relief sought by Swamy are core issues of policy that can only be framed by the RBI and the matter may not be amenable to judicially manageable standards as the court may be treading into the domain of policy.

PTI