Mumbai, Nov 18:
Economic offences pose a direct challenge to the nation’s health and wealth, Vice President M Venkaiah Naidu said Saturday.
The world must wake up to this new challenge and adopt appropriate measures to deal with it, Naidu said while speaking at The Economic Times Awards for Corporate Excellence here.
The Insolvency and Bankruptcy Code enacted by the government has begun to turn the wheel, he said, adding that some big resolutions have happened and banks are getting back their money.
“There is now a change in mindset. There is greater eagerness to settle dues in a timely fashion. Because promoters know that once they are dragged to the NCLT, they could lose their companies. Banks are expected to recover over Rs 1.5 lakh crore of bad debts this year itself,” he said.
“What does this clean-up mean? It is obvious that credit will go to those with bankable ideas and not to those with clout and connections. This is the democratisation of credit.
“The insolvency law epitomises the new way of doing business where there is no discretion in allocation of resources, there is no interference from the government, and banks take decisions based on merit of the proposal. Efficient allocation of capital is the bedrock of a robust modern economy,” Naidu said.
There has been a clear demonstration of resolve, sense of purpose and urgency on the part of the central and state governments, corporations, entrepreneurs, investors and all other stakeholders to collectively strive for building a new India, where the aspirations of all the citizens will be fulfilled, he said.