Petition - Plea in SC Against Writing-Off NPAs and Waiving-Off Loans by Banks

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IN
IN THE SUPREME COURT OF INDIA

ORIGINAL WRIT JURISDICTION
Writ Petition (Civil) No _______ of 2019
IN THE PUBLIC INTEREST LITIGATION OF:
Mrs. Reena. N. Singh
…Petitioner
Versus
Union of India &others
…Respondent
PAPER BOOKS
(FOR INDEX PLEASE SEE INSIDE)
WITH
I.A NO. OF 2019
AN APPLICATION FOR STAY
ADVOCATE FOR THE PETITIONER: PREETI SINGH

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INDEX
S.I Particulars of Documents Page No. of part to Remarks
No. which it belongs
Part I Part II
(Contents of (Contents
Paper Book) of file
alone)
(i) (ii) (iii) (iv) (v)
1. Listing Proforma A1-A2 A1-A2
2. Cover Page of Paper Book A-3
3. Defect List A-5
4. Note Sheet NSI to…
5. List of Dates B-G
6. Civil Writ Petition with affidavit in 1-36

support.
7. APPENDIX
Relevant portion of article 32 of the 37
constitution of India
8. ANNEXURE P-1
Copy of news report dated 12.07.2018
on the official website of RBI BANK 38
Fiscal Position of State Governments
9. ANNEXURE P-2
Copy of news report dated 14 June 2017
on the official website of Quartz India All 39-40
the losers in the great Indian game of
farm-loan waivers.
1990 India‘s first agricultural Loan

Waiver of Rs. 10,000 crores: source the
official website of Wikipedia.
10. ANNEXURE P-3

Copy of news report dated 15.12.2009 41-42
on the official website of Times of
IndiaFarm loan waivers won LS polls for
Cong.
11. ANNEXURE P-4

on the official website of federal reserve
bank of San Francisco Central and state
governments waived Rs 890 Billion of
farm loans.
12. ANNEXURE P-5
on the official website of Economic times
Govt increased allowable provision to
Banks on NPA‘s to 8.5so as to reduce
Banks‘ tax liabilities.
WWW.LIVELAW.IN
13. ANNEXURE P-6

Copy of news report dated
07.02.2017on the official website of 47-48
Indian Express Technical write- offs
creates non transparency, brings wrong
doings: Former Deputy RBI governor.
14. ANNEXURE P-7
Copy of news report dated 23.06.2017 49
on the official website of scroll in farm
loan waivers are not same as corporate
NPA‘s and its tough to say which is
worse
15. ANNEXURE P-8
on the official website of First Post those
Loans worth Rs 2.72 lakh crore written
off since 2014 and only Rs 29000 crores
recovered.
16 ANNEXURE P-9
on the official website of The Jagran
josh newspaper RBI information stating
the list of Public sector Banks having
highest share in NPA‘s 11-05-2017.
17. ANNEXURE P-10
Copy of news report dated 54-55
21.05.2018on the official website ofThe
Business today Private Banks record
450% jump in NPA‘s and ICICI Bank
tops the list.
18. ANNEXURE P-11
Copy of news report dated 31.05.2018
on the official website of The Business 56-58
today Bad loans of 38 listed banks
collectively crossed 10.17 lakh crores in
4th quarter of financial year ending
2018.
19. ANNEXURE P-12
on the official website of The Business
today As per RBI data for FY ending 31-
03-2018 only two banks were in profit
from the list of 21 Public Sector Banks.
20. ANNEXURE P-13
Copy of the news report dated 61-63
24.10.2018 on the official website ofThe
Business standard Comptroller and
auditor general questioned role of RBI
on NPA crisis.
21. ANNEXURE P-14
on the official website of Times of India
Finance Minister stating that over 6000
officers of Public sector Banks held
responsible for bad loans in FY 2017-18.
WWW.LIVELAW.IN
22. ANNEXURE P-15

on the official website of Economic times
Syndicate bank hints that loan waiver
may challenge NPA reduction efforts.
22. ANNEXURE P-16

on the official website livemint.com
stated the equivalence of farm loan
waivers and corporate NPA‘s
27. ANNEXURE P-17
on the official website the wire in Farm
Loan waivers and corporate defaulters
are two sides of same coins
28. ANNEXURE P-18
Copy of News Report dated 02.01.2019 70-71
on the official website of Indian Express
Farm loan waivers help reduce
banks‘ priority sector NPAs
29 ANNEXURE P-19
Copy of News report dated 17.03.2018 72
on the Official website of Economy
Times Banks' NPA steadily rising for past
8 years: Shiv Pratap Shukla
30 ANNEXURE P-20
on the official website of RBI BANK
Fiscal Position of State Governments
31. I.A No. of 2019
79-81
32. Filing Memo 82
33. Vakalatnama 83
SYNOPSIS AND LIST OF DATES
The present Writ Petition under Article 32 of the Constitution of
India, is being filed in Public Interest by the petitioner seeking
the intervention of this Hon‘ble Court for issuing appropriate
writ/order/direction(s) to the Respondents to act upon the
suggestions made by the Petitioner so as to refrain the
respondents from doing Technical write off of NPA‘s and also to
refrain the respondents to waive off Bank loans and to ensure
transparency and fairness regarding usage of public funds which
belongs to country‘s economy.As this practice of loan waiving
adversely affects the economy by increasing the fiscal deficit due
to Technical writing off of Non PerformingAssets(NPA‘s) by Banks
and also due to waiving off of loans by Banks on the instructions
of state and central governments.The political parties are
offering Loan waiver schemes in their election manifesto for their
political motives by ignoring the negative effects of loan waivers
on the Economy, as they are using the offer of manipulation of
public fund as a tool to achieve their political motives to come to
power.The political parties are offering to waive the loan from
the government exchequer gathered by taxation and not from
their political party funds.The objective of this petition is to stop
the misuse and manipulation of public money in the hands of
political parties and to stop technical write off of NPA‘s by Banks
as the Banks are profit oriented corporate entities incorporated
under law.Presently the majority of banks in our country are
facing losses,more than 6000 Bank employees were found
responsible for Banks NPA‘s.The technical write off of Non
Performing assets is like tampering and fabrication of Balance

Sheet which will not give the true and fair picture of its financial
condition, the Banks also get a percentage of around 7.5% to
8.5%of NPA as an allowable provision from their income which
reduces their tax liability, this also directly indicates that NPA‘s
are helping banks in reducing their taxes.The political parties
attract mass voters or vote banks at the cost of public funds
which belong to country‘s economy. The Fiscal deficit of majority
of states clearly mentions the negative monetary conditions of
the state governments. The political parties are ignoring the
financial and economic condition of the country and irrespective
of this fact, the political parties are leaving no stone un-turned
by offering various loan waiver and monetary schemes in their
party manifesto‘s in order to grab power by luring particular
section of vote bank and the masses, specially farmers. These
political parties by offering temporary incentives like loan
waiving is spoiling the economy‘s the credit culture and are
permanently making the farmer financially weaker and
vulnerable. Presently there is hardly any resultant farmer
friendly policy by the government which can truly help to
improve the financial condition of farmer. The government can
remove providing Minimum Support Price (MSP) of few crops and
can introduce ―One District One Agriculture product‖ production
system with this system different market demand based
products will be produced and the same to be purchased directly
from the farmers by the government at an average market rate.
The MSP system is a decades old theory to keep the farmer poor
and needy which is in no way in competition to the present
technological world. India‘s being a large country with the

largest section of people dependent on agriculture lacks the
perfect agriculture model. Appears that the people sitting in
power or the political parties who are trying to come in power
never wants that the majority of section of Indian Farmer comes
out of poverty, due to their large percentage of share in
elections. The small country of Netherlands having a population
of 1 Crore 75 Lakhs only,is presently a global agriculture giant in
agriculture production, it provides food stuff to around a large
portion of population of the world and clearly shows what can be
achieved through farming.If we compare the difference between
India and Netherlands, The answer is the lack of true genuine
intention to make farmer financially strong and independent. The
agriculture sector requires a permanent resultant policy and not
a temporary sweet poison named loan waiver which is affecting
honest credit culture, credit discipline. Waivers effects future
borrowers to repay and also creates a moral hazard. We need to
create a consensus that such loan waiver policies are eschewed,
Sub-sovereign fiscal challenges in this context could affect
national balance sheets, Debt waivers also entail transfers from
taxpayers to borrowers.A common PERSON is unable to
understand the negative affect/result of technical writing off of
NPA‘s and waiving off of loans on Economy. The funds or money
circulates in the economy through the banking channel, the
banks are the hands of economy which holds money for
everyone and is also the holder of everyone‘s money .The funds
available with the banks are directly and indirectly related to
general public. In our Democratic country the general public
elects its representatives and bring them to power with a hope

that such laws and policies will be formulated which will provide
the whole society growth and development in all spheres of life
whether it is in health care, education, employment, up-liftment
of economic condition of poor section, maintenance of law and
order and providing of welfare benefits to the vulnerable section
of society irrespective of cast and creed.It is respectfully
submitted that in order to ensure the good economic condition of
the country by reducing fiscal deficit and improving economic
condition of farmers along with the majority of citizens of our
esteemed country the Petitioner humbly requests for following:
(a) That the Banks should be restrained from TECHNICAL
WRITING OFF OF NPA‘s so that the true and exact
financial conditions of the banks cannot be
camouflaged.
(b) The Banks should not be given any allowable provision
or other in percentage to their Non Performing Assets
(NPA) which reduces their tax liabilities.
(c) The System of waiving of loans should be stopped. The
Centre and State governments should not be permitted
to reduce or waive off loans.
(d) Political parties should not be permitted to offer loan
waiving schemes or any other monetary schemes in
their election manifestos.
(e) The Central Government and State governments should
formulate such an agricultural policy which can make
farmer financially prosperous and stable with a bright
future and increases his interest in agriculture and
farming sector.
LIST OF DATES
1990 India‘s first national loan waiver: Central
government waived 10000 crores of farm loans.
2008 All the losers in the great Indian game of farm-loan
waivers. QUARTZ INDIA
15.12.2009 A news report of Times of India: official website
mentions that Farm loan waivers won LS polls For
Cong.
2017 Central and state governments waived Rs.89,000/-
crores of farm loans.
01.02.2017 Govt increased allowable provision to Banks on
NPA‘s 7.5 to 8.5 % so as to reduce Banks‘
taxliabilities : source : official website of Economic
Times
07.02.2017 Technical write-offs creates non transparency,
brings wrong doings: Former Deputy RBI governor:
KC Chakrabarty : official website Indian Express.
23.06.2017 Article published in Scroll magazine mentioned that
farm loan waivers are not same as corporate NPA‘s
and its tough to say which is
worse:https://scroll.in/article
16.04.2018 News Report published in the first

post.com/business those Loans worth Rs 2.72 lakh
crore written off since 2014 and only Rs 29000
crores recovered.
04.05.2018 The Jagranjosh newspaper published RBI
information stating the list of Public sector Banks
having highest share in NPA‘s 11-05-2017.

21.05.2018 The Business today published that Private Banks
record 450% jump in NPA‘s and ICICI Bank tops
the list.
31.05.2018 The Business today published that Bad loans of 38

listed banks collectively crossed 10.17 lakh crores
in 4th quarter of financial year ending 2018.
24.07.2018 As per RBI data for FY ending 31-03-2018 The

Business today published that 2018: only two
banks were in profit from the list of 21 Public
Sector Banks.
24.10.2018 The Business standard published: Comptroller and
auditor general questioned role of RBI on NPA crisis
28.12.2018 News report published in the Times of India that
Finance Minister stating that over 6000 officers of
Public sector Banks held responsible for bad loans
in FY 2017-18.
10.01.2019 Economic times stated that: Syndicate bank hints
that loan waiver may challenge NPA reduction
efforts.
The official website of livemint.com stated the
equivalence of farm loan waivers and corporate
NPA‘s.
15.01.2019 The official website of: the wire. in stated that
Farm Loan waivers and corporate defaulters are
two sides of same coins.
02.01.2019 The official website of: Indian Express Farm loan
waivers help reduce banks‘ priority sector NPAs.
17.03.2018 The Official website of: Economy Times Banks' NPA
steadily rising for past 8 years: Shiv PratapShukla
12.07.2018 The official website of: RBI BANK Fiscal Position of
State Governments.
05.04.2019 Hence the Writ Petition
CIVIL WRIT JURISDICTION
Writ Petition (Civil) No _______ of 2018
IN THE PUBLIC INTEREST LITIGATION OF:
Mrs. Reena.N. Singh

207-208, Deep Plaza
Near Civil Court
Gurgaon-122001.
…PETITIONER
VERSUS
1. Union of India
Through its Secretary,
North Block
New Delhi-110001 Respondent No. 1
2. Ministry of Agriculture
Through its Secretary,
New Delhi-110001 Respondent No-2
3. RESERVE BANK OF INDIA

Through its Governor
16th floor, Central Office Building
Shahid Bhagat Singh Marg
Mumbai - 400 001 Respondent No-3
4. Election Commission of India

Through its Chief Election Commissioner
Nirvachan Sadan, Ashoka Road,
New Delhi 110001 Respondent No-4
5. State of Haryana
Through its Chief Secretary
4th Floor, Haryana Civil Secretariat
Sector-1, Chandigarh - 160019
Chandigarh Respondent No-5
6. State of Uttar Pradesh

1st Floor, Room No. 110
Shastri Bhawan,
Secretariat, Lucknow - 226 001,
Uttar Pradesh Respondent No-6
7. State of Rajasthan
Government of Rajasthan Secretariat,
Jaipur -302005, Rajasthan Respondent No-7
8. State of Maharashtra
CS Office Main Building,
Mantralaya 6th Floor,
Madame Cama Road, 400032
Mumbai, Maharashtra Respondent No-8
9. State of Gujarat
1st Block, 5th Floor Sachivalaya,
Gandhi Nagar, 382010
Gujarat Respondent No-9
10. State of Himachal Pradesh

H P Secretariat, Shimla – 171002
Shimla, Himachal Pradesh Respondent No-10
11. State of Uttrakhand

4 Subhash Road, Uttarakhand Secretariat
Dehradun - 248001
Uttrakhand Respondent No-11
12 State of Bihar
Main Secretariat, Patna - 800015
Patna, Bihar Respondent No-12
13 State of west Bengal

13th Floor, 325, Sarat Chatterjee Road,
Mandirtala Shibpur, Howrah - 711102
Kolkata, West Bengal Respondent No-13
14 State of Punjab
Government of Punjab
Chandigarh - 160001
Punjab Respondent No-14
15. State of Jammu & Kashmir

Jammu & Kashmir
R. No. 2/7, 2nd, Floor Main Building
Civil Secretariat, Jammu – 180001
Respondent No-15
16. State of Jharkhand
Ranchi, 1st Floor, Project Building,
Dhurwa, Ranchi 834004
Jharkhand Respondent No-16
17. State of Chhattisgarh
Mahanadi Bhawan, Mantralaya
Naya Raipur - 492002
Raipur, Chhattisgarh Respondent No-17
18. State of Odisha

General Administration
Department Odisha Secretariat
Bhubaneswar – 751001, Odisha
Respondent No-18
19. State of Assam

Block- C, 3rd Floor,
Assam Sachivalaya
Dispur - 781006,
Guwahati Assam Respondent No-19
20. State of Arunachal Pradesh

Civil Secretariat
Itanagar - 791111
Arunachal Pradesh Respondent No-20
21. State of Manipur

Through its Secretary
South Block, Old Secretariat
Imphal- 795001 Manipur Respondent No-21
22. State of Nagaland

Civil Secretariat, Kohima797004
Kohima, Nagaland Respondent No-22
23. State of Sikkim

Government of Sikkim New Secretariat,
Gangtok, - 737101Sikkim Respondent No-23
24. State of Tripura

New Secretariat Complex -799010
Agartala West, Tripura Respondent No-24
25. State of Meghalya

Through its Secretary
Main Secretariat Building Rilang Building,
Room No. 321 Meghalaya Secretariat,
Shillong- 793001, Meghalya
Respondent No-25
26. State Andhra Pradesh

1st Block, 1st Floor
A.P Secretariat Office,
Velagapudi – 522503
Respondent No-26
27. State of Tamil Nadu

Secretariat
Chennai-600009 Tamil Nadu
Respondent No-27
28. State of Kerala
Secretariat - 695001
Thiruvanathpuram
Respondent No-28
29. State of Karnataka
Room No. 320, 3rd Floor
Vidhana Soudha - 560 001
Bengaluru, Karnataka
Respondent No-29
30. State of Goa

Secretariat, Porvroim,
Bardez, 403521
Panaji, Goa
Respondent No-30
31 State of Telengana
Block C, 3rd Floor, Telangana Secretariat
Khairatabad,
Hyderabad, Telengana
Respondent No-31
32 State of Madhya Pradesh
MP Mantralaya, Vallabh Bhavan
Bhopal - 462004
Madhya Pradesh
Respondent No-32
33 State of Mizoram
New Secretariat Complex, Aizwal - 796001
Mizoram
Respondent No-33
34 Union Territory of Delhi
Through Chief Secretary
Delhi Secretariat, IP Estate,
New Delhi – 110002
Respondent No-34
35 Union Territory Andaman and Nicobar
Andaman and Nicobar
Administration Secretariat,
Port Blair – 744101
Respondent No-35
36 Union Territory of Puducherry
Through Chief Secretariat, Goubert Avenue,
Puducherry – 605001
Respondent No-36
37. Union Territory of Daman & Diu

Secretariat, Moti, Daman - 396 220
Respondent No-37
38. Union Territory of Dadra and Nagar Haveli

Secretariat, Moti, Silvasa,
Daman – 396220
Respondent No-38
39 Union Territory of Lakshadweep

Lakshadweep, Kavaratti – 682555
Respondent No-39
40. Union Territory of Chandigarh

Punjab Raj Bhawan,
Sector 6, Chandigarh-160019
Respondent No-40
41. Ministry of Finance

Through Secretary
Department of Economic Affairs
Room No. 67-B
New Delhi – 110001
Respondent No-41
…Contesting Respondents
A PUBLIC INTEREST LITIGATION PETITION UNDER
ARTICLE 32 OF THE CONSTITUTION OF INDIA READ WITH
SECTION 151 OF THE CODE OF CIVIL PROCEDURE, 1908
(AS AMENDED UPTO DATE), WHEREBY THE PETITIONER
IS PRAYING FOR ISSUING APPROPRIATE
WRIT/ORDER/DIRECTION(S) TO THE RESPONDENTS TO
ENSURE THAT THE BANKS SHOULD STOP THE PRACTICE OF
TECHNICAL WRITING OFF OF NPA‘S. THE CENTRE AND STATE
GOVERNMENTS SHOULD NOT BE PERMITTED TO REDUCE OR

WAIVE OFF LOANS.POLITICAL PARTIES SHOULD NOT BE
PERMITTED TO OFFER LOAN WAIVING SCHEMES OR OTHER
MONETARY SCHEMES IN THEIR ELECTION MANIFESTOS.
FORMULATION OF SUCH AN AGRICULTURAL POLICY BY
CENTRAL GOVERNMENT AND STATE GOVERNMENT WHICH CAN
MAKE AGRICULTURE A PROFITABLE SECTOR OR ANY OTHER
POLICY TO TRANSFORM AGRICULTURE SECTOR INTO AN
INDUSTRY WHICH CAN HELP FARMERS TO CREATE THEIR
INTERESTS IN AGRICULTURE SO THAT THEY HAVE A BETTER
ECONOMIC AND LIVING CONDITION WITH A BRIGHT FUTURE
IN AGRICULTURE AND FARMING SECTOR. AND FOR SEEKING
FURTHER DIRECTIONS.
To
THE HON‘BLE THE CHIEF JUSTICE OF
INDIA THE HON‘BLE SUPREME COURT OF
INDIA AND HIS COMPANION JUSTICES
THE HUMBLE PETITION OF THE

PETITIONER ABOVE NAMED
MOST RESPECTFULLY SHEWETH:
1. It is most humbly submitted that the petitioner is filing
petition under Article 32 of the constitution of India in Public
interest, by the petitioner seeking the intervention of this
Hon‘ble Court for issuing appropriate writ/order/direction(s)
to the Respondents to act upon the suggestions made by the
Petitioner for ensuring that the banks should stop the practice
of technical writing off of NPA‘s. The Center and State
governments should not be permitted to reduce or waive off
loans. Political parties should not be permitted to offer loan
waiving schemes or other monetary schemes in their election

manifestos. Formulation of agricultural policy by central
government and state government which can truly help
farmers to have a better economic and living condition with a
bright future in agriculture and farming sector. And for
seeking; further directions in this regard.
2. That the Petitioner is an Advocate by profession and is
invoking the Writ Jurisdiction of this Hon‘ble Court under
Article 32 of the Constitution of India, for seeking the
intervention of this Hon‘ble Court for issuing appropriate
writ/order/direction(s) to the Respondents made by the
Petitioner that the banks should stop the practice of technical
writing off of NPA‘s. The center and state governments should
not be permitted to reduce or waive off loans. Political parties
should not be permitted to offer loan waiving schemes in their
election manifestos. Formulation of resultant agricultural
policy by central government and state government which
can truly help farmers to have a better economic and living
condition with a bright future in agriculture and farming
sector and for seeking further directions;
3. That the requisite information, as per New PIL Rules,
pertaining to the Petitioner, is as under:-
a) The Petitioner is Advocate by profession

and is having office at 207-208 Deep
Plaza, Near Civil Court, Gurugram-
122001, Haryana. The petitioner has
ADHAR NO - 2695-9685-2169 and PAN
NO. ADOPR2377L The Annual Taxable
income of the petitioner, as per balance
sheet of the last financial year is
approximately Rs.07,82,175/-. The
petitioner is having mobile number is
8800588045 and email address of the
petitioner is reenansingh81@gmail.com
b) That the facts relating to the cause of
action for the institution of the present
Petition are mentioned herein below.
4. This petition is against the misuse of public money due to
forced Non Performing Assets (Bank NPA‘s) by government in
the form of Loan waivers including Farm/Agriculture loan and
writing off of Bank NPA‘s and offering of Loan Waiving and
offering of monetary schemes by political parties for attracting
voters for their political motives. The political parties whether in
power or in opposition should not be allowed to manipulate
public funds for their political motives to attract a section of
mass voters or vote banks at the cost of public funds which
belongs to country‘s . The Practice of Waiving of loan by Banks
on the instructions of the State or Central government and the
Technical writing off of Non Performing Assets (NPA‘s) should be
completely stopped and refrained as this practice is adversely
affecting the Economy.
5. This petition is against the misuse of public money due to
forced Non Performing Assets (Bank NPA‘s) by government in
the form of Loan waivers including Farm/Agriculture loan and
writing off of Bank NPA‘s and offering of Loan Waiving and
offering of monetary schemes by political parties for attracting
voters for their political motives. The political parties whether in
power or in opposition should not be allowed to manipulate
public funds for their political motives to attract a section of

mass voters or vote banks at the cost of public funds which
belongs to country‘s . The Practice of Waiving of loan by Banks
on the instructions of the State or Central government and the
Technical writing off of Non Performing Assets (NPA‘s) should be
completely stopped and refrained as this practice is adversely
affecting the Economy.
6. It is pertinent to mention that the Fiscal deficit of majority of
states clearly shows the negative economic and monetary
conditions of the state governments, Copy of news report dated
12.07.2018 on the official website of RBI BANK Fiscal Position of
State Governments is annexed herewith and marked as
Annexure P-1 (Pages to ) irrespective of this fact
the political parties in order to grab the power is leaving no
stone un turned by offering various loan waiver and other
monetary schemes in their party manifesto‘s so as to grab power
by luring their particular section of vote banks and the masses.
In year 1990 India‘s first agricultural Loan Waiver of Rs. 10,000
crores: source the official website of Wikipedia. Copy of news
report dated 14 June 2017 on the official website of Quartz India
All the losers in the great Indian game of farm-loan waivers.
1990 India‘s first agricultural Loan Waiver of Rs. 10,000 crores:
source the official website of Wikipedia is annexed herewith and
marked as Annexure P-2, (Pages to ) and how the
congress party won Lok Sabha Elections in year 2009 by offering
Loan waiving schemes, Copy of news report dated 15.12.2009
on the official website of Times of IndiaFarm loan waivers won
LS polls for Cong is annexed herewith and marked as Annexure
P-3 (pages to ). The common Indian voter is unable

to understand the negative affect/result of mis-managed public
funds on Economy. The Banks being the financial institutions are
not different from Big Corporates as they are incorporated under
the company laws with a profit motive and not for any charity
oriented or non-profit work. The funds available with the banks
are a form of deposits directly and indirectly related to general
public. In our Democratic country the general public elects its
representatives and bring them to power for the formulation of
such laws and policies which can provide overall growth and
development in all spheres of life whether it is health care,
education, employment, up-liftment of economic condition of
poor section, maintaining law and order and providing of welfare
benefits to the vulnerable section of society irrespective of cast
and creed. The usage of public fund is not decided by the
individual citizen but by ruling elected government whose funds
are financed by taxation.
7. Welfare of the general public in comparison to the self
interest of a person or group in which the whole society has a
stake and which warrants recognition, promotion, and protection
by the government and its agencies. Despite the vagueness of
the term, public interest is claimed generally by governments in
matters of state secrecy and confidentiality. It is approximated
by comparing expected gains and potential costs or losses
associated with a decision, policy, program.
8. Public funds should be considered as public goods in the
same way as that are of value to the public as a whole, and
which benefits everyone. The funds in the government treasury,
the funds which are mentioned by the government in their

budget, the funds in the Banks of both public and private sector
is the public money which belongs to the Country‘s Economy and
to its people for its rights and usages through the hands of
government. We should consider the importance of Public
Financial Management, PFM and how best can be done to
improve it, as a key element of statehood is the ability to tax
fairly and efficiently and to spend responsibly. These are
fundamental characteristics of ‗inclusive‘ state institutions, which
generate trust, promote innovative energies and allow societies
to flourish. Improving the effectiveness of a PFM system may
generate widespread and long-lasting benefits, and may in turn
help to reinforce wider societal shifts towards inclusive
institutions, and thus towards stronger states, reduced poverty,
greater gender equality and balanced growth.
9. The maintenance of aggregate fiscal discipline is the first
objective of a PFM system: it should ensure that aggregate
levels of tax collection and public spending are consistent with
targets for the fiscal deficit, and do not generate unsustainable
levels of public borrowing. Secondly, a PFM system should
ensure that public resources are allocated to agreed strategic
priorities, in other words that allocative efficiency is achieved.
Thirdly, the PFM system should ensure that operational efficiency
is achieved, in the sense of achieving maximum value for money
in the delivery of services. Finally, the PFM system should follow
due process and should be seen to do so, by being transparent,
with information publicly accessible, and by applying democratic
checks and balances to ensure accountability.

10. In the present Economic scenario in our country Economic
health of the states is going through crisis, as per the RBI
statistical report mentioning the state wise Fiscal Deficit, also the
banking system which is a major cause of current banking crisis
where huge asset liability mismatch exists . As mentioned by
Comptroller and Auditor General of India (CAG) Rajiv Mehrishi,
news report dated 24.10.2018 on the official website ofThe
Business standard Comptroller and auditor general questioned
role of RBI on NPA crisis. Copy of news report dated 11.09.2017
on the official website of federal reserve bank of San Francisco
Central and state governments waived Rs 890 Billion of farm
loans is annexed herewith and marked as Annexure P-4,
(pages to ) who questioned the role of Reserve Bank
of India in the present banking crisis, asking what the regulator
was doing when the banks were lending huge amounts that
resulted in asset-liability mismatch and huge loans. The banking
sector had non-performing assets (NPAs) or bad loans worth
over Rs 961000 crores by the end of 2017-18, according to
government data. The CAG also pointed out that there is a lack
of public policy debate or a narrative on the root causes of the
banking crisis; and also, nobody is talking or writing about the
role of the regulator. Despite from banks' own mismanagement
as well as theft of public money which are amongst the reasons
behind the banking sector mess, there is much more to this
which is complex to understand, as informed by CAG.From Rs
961000 crores banking sector NPAs as on March 31, 2018, Rs
85300 crores emanated from agriculture and allied activities
while the balance amount originated from loans to the industrial

sector. There is a news report dated 11.09.2017 on the official
website of federal reserve bank of San Francisco ,that India ‗s
Central and state governments waived Rs 890 Billion of farm
loans. Copy of news report dated 01.02.2017 on the official
website of Economic times Govt increased allowable provision to
Banks on NPA‘s to 8.5so as to reduce Banks‘ tax liabilities is
annexed herewith and marked as Annexure P-5, (pages to
). India dearly needs the structural reforms and a lot of these
relate to what the state governments can do in this direction.So
far as the economy of the country is concerned we all are losers
in the great game of farm loan waiving as reported in, news
report dated 14 June 2017 on the official website of Quartz India
: All the losers in the great Indian game of farm-loan waivers
Copy of news report dated 07.02.2017on the official website of
Indian Express Technical write- offs creates non transparency,
brings wrong doings: Former Deputy RBI governor is annexed
herewith and marked as Annexure: P -6 (pages to
).
11. The following Data explains the health of Economy due to
NPA‘s, Writing off of NPA‘s and loan waivers, these technical
write off‘s creates non transparency and brings wrong doings, as
mentioned by Former RBI Deputy Governor, news report dated
07.02.2017on the official website of Indian Express. Copy of
news report dated 23.06.2017 on the official website of scroll in
farm loan waivers are not same as corporate NPA‘s and its tough
to say which is worse is annexed herewith and marked as
Annexure: P-7 (pages to ). :NPA crisis: (PSBs) have
technically written-off loans worth Rs 2,72,558 crore, news

report dated 16.04.2018 on the official website of First Post
those Loans worth Rs 2.72 lakh crore written off since 2014 and
only Rs 29000 crores recovered. Copy of news report dated
16.04.2018 on the official website of First Post those Loans
worth Rs 2.72 lakh crore written off since 2014 and only Rs
29000 crores recovered is annexed herewith and marked as
Annexure P-8 (pages to ). Of the amount, a meagre
Rs 29,343 crore has been recovered, according to data available
with the Reserve Bank of India (RBI).Of the write-offs, the
biggest in a year happened at the Mumbai-traded State Bank of
India (SBI), which wrote off Rs 31,096 crore in the nine months
to 31 December, 2017.PSBs recovered a total of Rs 15,786 crore
over a twenty-one month period ended 31 December 2017 (the
first nine months of FY18 and all of FY17 put together). This data
was submitted by the Minister of State, Finance, Shiv Pratap
Shukla, on 27 March, 2018, in Parliament, News report dated on
the Official website of Economy Times Banks' NPA steadily rising
for past 8 years: Shiv Pratap Shukla. Copy of news report dated
04.05.2018 on the official website of The Jagran josh newspaper
RBI information stating the list of Public sector Banks having
highest share in NPA‘s 11-05-2017 is annexed herewith and
marked as Annexure P-9 (pages to ).
At present, Indian banks‘ total gross non-performing assets
(NPAs) stand at Rs 9 lakh crore. Of this, over 90 percent is with
state-run banks.The Finance minister Mr Arun Jaitely had stated
that around 6000 bank officers were found responsible for bad
loans, news report dated 28.12.2018 on the official website of
Times of India Finance Minister stating that over 6000 officers of

Public sector Banks held responsible for bad loans in FY 2017-18.
Copy of news report dated 21.05.2018on the official website
ofThe Business today Private Banks record 450% jump in NPA‘s
and ICICI Bank tops the list is annexed herewith and marked as
Annexure P-10 (pages to ). The Finance Minister
also proposed to increase allowable provision for Non-Performing
Asset from 7.5 per cent to 8.5 per cent. This will reduce the tax
liability of banks, news report dated 01.02.2017 on the official
website of Economic times, Govt increased allowable provision to
Banks on NPA‘s to 8.5 % as to reduce Banks‘ tax liabilities. Copy
of news report dated 31.05.2018 on the official website of The
Business today Bad loans of 38 listed banks collectively crossed
10.17 lakh crores in 4th quarter of financial year ending 2018 is
annexed herewith and marked as Annexure P-11, (pages
to ) The RBI‘s all-out war against NPAs began in January
2015 when the central bank put out rules for the early
recognition of stressed assets in the banking system and their
punitive provisioning. Till then, PSBs, which account for 70
percent of the banking system and almost 90 percent of bank
NPAs, were happily ever-greening bad loans of influential,
politically connected promoters via technical adjustments. The
infamous corporate-political nexus worked in full swing. Banks‘
recovery record from NPAs has been extremely poor. To
understand the gravity of the matter, just look at SBI‘s track
record. In fiscal year 2015 alone, SBI wrote-off loans worth Rs
23,973 crore while it recovered just Rs 317 crore. In the next
fiscal year fiscal year, it wrote off Rs 19,944 crore, whereas it
recovered Rs 3093 crore from loans that were written off. In

FY17, SBI wrote off loans worth Rs 27,574 crore, it recovered Rs
3,765 crore. In the subsequent fiscal year till December 2017, it
wrote off Rs 31, 096 crore, recovered mere Rs 3,221 crore.
12. India‘s state-run banks have been one of the biggest
recipients of taxpayers‘ money. The government announced a Rs
2.11 lakh crore capital infusion in state-run banks. Now, will the
transfer of assets worth Rs 4 lakh crore offer hope to India‘s
baking system? It is naïve to expect a significant outcome since
admitting to bankruptcy proceedings only ensures speedy
resolution of the case. If a bankrupt company fails to turn
around, lenders will have to sell its assets to recover money. The
problem is that there aren‘t enough buyers for such stressed
assets in India at prices the banks want, to compensate for their
losses.
13. The levy of farm loan waivers being announced by states
appears to have an unusual beneficiary: banks. The proportion
of bad loans in the priority sector of scheduled commercial banks
(SCB) fell from 47 per cent in 2003 to 25 per cent in 2017, while
NPAs of non-priority sector shot up from 51 per cent to 75 per
cent during the same period. Similarly, among PSBs, if priority
sector bad loans stood at 47 per cent in 2003, they fell to 21 per
cent in 2017.This figure for SBI—the country‘s largest lender—
reduced from 48 per cent to 20 per cent during the period.
Notwithstanding the waivers, gross NPAs for agriculture and
allied activities of all SCBs for the last three years, as reported
by RBI, shot up from Rs 51,964 crore as on March 2016 to Rs
85,482 crore on March 2018,the farm laon waivers help banks to
reduce priority sector , news report dated 24.07.2018 on the

official website of The Business today As per RBI data for FY
ending 31-03-2018 only two banks were in profit from the list of
21 Public Sector Banks. Copy of news report dated 24.07.2018
on the official website of The Business today As per RBI data for
FY ending 31-03-2018 only two banks were in profit from the list
of 21 Public Sector Banks. Annexure P-12, (pages to )
14. Also, NSSO, which conducted a situation assessment
survey of agricultural households in 2013, found that the
average loan outstanding per agricultural household stood at
47,000. It also estimated that at the all-India level, 25.8 per
cent of the loans were sourced from money lenders, at steep
interest rates. In order to prevent a debt spiral, the government
took initiatives to reduce the debt burden of farmers, while credit
was made available at a reduced interest rate of 7 percent.
Farmers can also avail of an interest subvention scheme from
the Department of Agriculture Cooperation and Farmers‘ Welfare
for short-term crop loans up to3 lakh. This offers interest
subvention of 2 percent per annum to banks on use of their own
resources. Besides, an additional 3 percent incentive is given to
farmers for prompt loan repayment, reducing effective interest
rate to 4 percent.
15. Further, in order to discourage distress sales by farmers
and to encourage them to store their produce in warehouses
against warehouse receipts, the benefit of interest subvention
scheme has been extended to small and marginal farmers
having kisan credit cards and storing produce in accredited
warehouses up to six months post-harvest on the same rate as
available to crop loans. Farmers affected by natural calamities

also get relief like interest subvention and loan restructure.
These directions have been so designed that the moment a
calamity is declared, they are set in motion without any
intervention.
Farm loan waivers are not the same as corporate NPAs –
and it‘s tough to say which is worse, news report dated
23.06.2017 on the official website of scroll : farm loan
waivers are not same as corporate NPA‘s and its tough to
say which is worse. Copy of the news report dated
24.10.2018 on the official website ofThe Business standard
Comptroller and auditor general questioned role of RBI on
NPA crisis is annexed herewith and marked as Annexure
P-13 (pages to ).
16. Farm loan waivers are direct costs for the state. Corporate
loans take a more circuitous route. The impact of farm loan
waivers and bad loans is vastly different on the national
accounts. ―Farm loan waiver is directly coming from the fiscal
budget. The burden will be borne by the respective treasury of
the state government. For instance, [Maharashtra]‘s fiscal

impact will be double the current fiscal deficit of the state. In
banks, the burden might fall on shareholder. Banks might write
it off but they continue the recovery process,‖ how much they
recover can be authenticated by Genuine Audit process only. The
remedial measures taken are quite different in farm loans from
corporate debt. While banks have a host of legal remedies such
as debt recovery tribunals and corporate debt restructuring when
companies default, a farm loan waiver simply comes as a
subsidy from the government. As a result, in case of stressed
corporate assets, the defaulting entity might end up losing the
whole company if they don‘t pay up on time even though the RBI
has not been able to make much of a progress to solve the NPA
problem through its slew of measures. Eventually, the burden of
corporate NPAs is going to fall on the shoulders of the
government which is at the helm of PSU banks who are
constantly vying for more funds.
17. It is unclear which will end up costing the government
more. A recently published paper by Credit Suisse estimated that
farm loan waivers across eight states including Madhya Pradesh,
Rajasthan, and Punjab would cost under Rs 2 lakh crore, with
that amount spread over a few years.―However, in our view, this
would be the upper end of the fiscal cost, and the final number
could be lower, and the fiscal cost may be spread over 2-4
years. [Tamil Nadu], for example, has already gone through a
waiver of co-operative bank loans worth Rs 60 billion over five
years; only the courts directive of extending it to other farmers
remains,‖ the paper stated. This is so because most of the
waivers announced come with conditions attached and not all

agricultural loans are waived off. Mostly, the interest is waived
off or the loan waiver is provided to only a certain set of
borrowers who are selected based on certain criteria. In the case
of Maharashtra, it was decided that only marginal and small
farmers who paid their loans regularly will get a waiver.At the
same time, corporate debt waivers are not as sweeping. While
the banks keep demanding additional capital from the
government, the current government provided only a promise of
infusing a total of Rs 70,000 crore in public sector banks over a
period of four years in August 2015 through the project
Indradhanush. Meanwhile, these banks are also supposed to
raise another Rs 1.1 lakh crore from the open market to meet
their capital requirements as NPAs go through the roof,
18. Both represent a moral hazard. Apart from the fiscal
burden, any kind of loan waiver come with the burden of moral
hazard that waiving off loans destroys credit culture–something
that even central bank governors have warned about. Handing
out waivers, this argument suggests, starts a vicious cycle of
people not paying their loans in the hope of getting a waiver in
the future. This further makes those who pay on time feel
cheated for being responsible with their money. The question
about moral hazards comes up most frequently with farm loan
waivers. ―I think it undermines an honest credit culture. It
impacts credit discipline. It plugs incentives for future borrowers
to repay. In other words, waivers endanger moral hazard,‖ RBI
Governor Urjit Patel said two days after Uttar Pradesh
announced a Rs 36,000 crore loan waiver scheme. But what
about the credit culture among the corporate? An analysis by

Mint of RBI data showed that only 6% of agricultural loans were
deemed to be defaults while companies didn‘t pay 14% of their
loans. This implies that companies fare worse than farmers in
paying back their dues. ―Even in the worst drought years (2015),
only 7.4% of agriculture loans were stressed. But nearly a fifth
of the corporate loan book was under stress despite profit
margins of companies showing some improvement in 2015-16‖.
19. However, with farm loans as well as NPAs of companies, it
is the banks who take the first hit and then it trickles down to
the citizens, the equivalence of farm loan waivers and corporate
Npa‘a are same thing or we can also say they are the two sides
of same coin, news report dated 10.01.2019 on the official
website livemint.com stated the equivalence of farm loan
waivers and corporate NPA‘s. Copy of news report dated
28.12.2018 on the official website of Times of India Finance
Minister stating that over 6000 officers of Public sector Banks
held responsible for bad loans in FY 2017-18 is annexed
herewith and marked as Annexure P-14 (pages to ).
So one might debate their contents and quantity, but the fact
remains that both should be anathema to a well functioning
political economy news report dated 15.01.2019 on the official
website the wire : Farm Loan waivers and corporate defaulters
are two sides of same coins. Copy of news report dated
10.01.2019 on the official website of Economic times Syndicate
bank hints that loan waiver may challenge NPA reduction efforts
is annexed herewith and marked as Annexure P-15 (pages
to ).
20. As per the news report dated 21.05.2018 on the official
website ofThe Business today Private Banks record 450% jump
in NPA‘s and ICICI Bank tops the list. Copy of news report dated
10.01.2019 on the official website livemint.com stated the
equivalence of farm loan waivers and corporate NPA‘s is annexed
herewith and marked as Annexure P-16, (pages to ).
The equivalence of farm loan waivers and corporate NPAs, news
report dated 23.06.2017 on the official website of scroll : farm
loan waivers are not same as corporate NPA‘s and its tough to
say which is worse. Copy of news report dated 15.01.2019 on
the official website the wire in Farm Loan waivers and corporate
defaulters are two sides of same coins is annexed herewith and
marked as Annexure P-17, (pages to ).
21. Large scale measures in agriculture sector and in setting
up agriculture support infrastructure needs to be taken up by the
government, the marketing component of the chain is weak and
the Government should bring ways for different items for
production: as per one district one agricultural produce, to be
decided by govt., instead of continuous production of traditional
items like wheat, rice and sugarcane. The govt. should buy
different agricultural produce and not only few traditional items
like wheat, rice, sugarcane from farmers, at an average market
rate and simultaneously improving the storage, transport and
processing facilities of grains, fruits and vegetables which will
prevent distress sale of produce, the most important need in
agriculture is the provision of ―measures for raising output and
good prices for production to create profits for farmers rather
than more credit which, in the absence of viable profit from

agriculture, pushes them back into a debt trap‖.If the
infrastructure in agriculture is in its place, this would incorporate
the farmers in the mainstream and it might put an end to the
incessant subsidies in agriculture. Presently farmer is forced to
sell the produce immediately after the harvest at MSP, as all the
farmers sell their produce at the same time (i.e. immediately
after harvest) the farmers receive less for their produce than
what they could have obtained at a later stage in the market.
This is because at the time of harvest, there is an excess supply
in the market and the prices are driven down. There is an urgent
need to device a mechanism to take care of this issue, because
farmers are not able to reap the full benefits of their labour,
these circumstances strongly raises the requirement for a
good agricultural policy for commercialization of agricultural
sector as without making the agriculture sector profit oriented
the condition of farmers can never be improved .
22. Loan waivers to farmers are no favour, they are being
given to compensate for not giving them market prices for crops
and to keep them fool forever, instead of government making
practical policies to help them, they are trying to make the
farmers dependent on government in absence of helpful policies
which can contribute in their growth and development.

While the immediate impact of this loan waiving is a big
relief for farmers, as he has been pointed out by many,
this causes a spurt in NPAs as farmers across the board
stop repaying loans in the hope their loans are also repaid
by the government. A graphic by Macquarie Research (see

graphics) shows how farm-loan NPAs for SBI rose from
around 3% when the UPA announced its loan waiver in
2008 to around 12% now; in the interim, several states
also announced their own loan waivers, adding to the
pressure to default.
As a result, a study by Kotak Institutional Equities Research
shows a sharp dip in loan growth at the national level after
the 2008 write off and, in Andhra Pradesh and Tamil Nadu
after their write offs in 2014 and 2016 respectively. This is
especially important given that it is only a small proportion of
farmers that get bank loans; any reduction in this means they
too have to borrow in informal markets at very high rates of
interest.
23. In other words, unless there is a farm loan waiver of
around Rs 1.5-2 lakh crore every year, farmers will continue to
be shortchanged; in the last decade, including the loans waived
by the three states the Congress won in just now, loan waivers
have averaged around Rs 28,000 crore each year; the actual
process take 2-3 years to complete, so farmers get no relief till
then,it is clear that loan waivers are not a substitute for freeing
markets, a task that no government, has been able to achieve in
the last 70 years. If we calculate the loan waivers of states: MP‘s
waiver will cost around Rs 35,000 crore. Chhattisgarh‘s waiver
will cost Rs 6,100 crore. Rajasthan‘s waiver will cost around Rs
18,000 crore. Following this, the Assam government announced
a Rs 600 crore waiver in the state. Gujarat also followed suit
with a Rs 650 crore waiver of farm electricity bills. Let‘s add the
others up from the recent past as well. Congress-ruled
Karnataka recently announced a farm loan waiver amounting to
Rs 44,000 crore. UP announced a farm loan waiver of Rs 36,000
crore. Maharashtra, announced a farm loan waiver of Rs 34,000
crore. Some other farm loan waivers include Andhra Pradesh at
Rs 3,600 crore; Telangana at Rs 3,000 crore; Tamil Nadu at Rs
1,800 crore and Punjab at Rs 1,500 crore.Let‘s do the math. The
total effectively comes to Rs 1, 84,250 crore(one lakh, eighty
four thousand, two hundred fifty crore)On the surface, this is a
significant chunk of change. So it is important that we examine
the concerns that have been expressed about these waivers.
a. Waivers are not good for the credit culture. If people
realize they don‘t have to repay loans, they will borrow
recklessly.
b. They do not benefit all the farmers. They only benefit 10-
15% of the farmers, who had taken loans from banks and
not from unorganized sectors. Clearly, this is quite
selective.
c. It‘s not a long-term solution for what ails India‘s
agriculture industry.
24. NPA stands for ―non-performing asset‖. It‘s a bit of jargon
in the banking industry to indicate that someone took a loan and
did not pay it back or will never pay it back. If someone took a
loan, they must repay it. If they did not repay it, the bank must
seize whatever collateral was used for the loan. Because,
otherwise, people will borrow recklessly, and that‘s not good for
the credit culture. So loan repayment must be strictly enforced.
We all have heard of the huge ―NPA problem‖ that all our banks
are saddled with. Essentially, it means companies have borrowed
huge sums of money but not repaid them. Now, instead of
seizing collateral, what have banks done? They engage in
questionable ―restructuring‖ of the loan – in other words,
extending the repayment period of the loan, even when nothing
has yet been paid back – so that they do not have to seize the
assets of the borrower. There is 7also some evidence to show
they may engage in a practice called ‗ever greening‘– a practice
whereby they give even more loans to the companies that have
not paid back previous loans. The logic is that they then may
earn enough revenue to get out of trouble and start repaying
their loans. After one or two cycles of restructuring and ever
greening, eventually the bank realizes that the loan will never be
repaid. In other words, it is a ―non-performing asset,‖ and will
have to be written off. No assets are seized, except maybe
worthless plots of land or empty buildings– if at all. In banking
parlance, it is said that the lending bank ―got a haircut.‖Do the
people who have taken such loans pay a penalty? Are they
blacklisted? Are they termed defaulters who can never again get
credit (because, you know, farmers who have defaulted on their
loans can never get loans again)? Wrong again. They will get
credit again and again, and may be allowed to default again and
again. Very little action will be taken against them.
25. List of Public Sector Banks which have highest share in
NPA, news report dated 04.05.2018 on the official website of The
Jagran josh newspaper RBI information stating the list of Public
sector Banks having highest share in NPA‘s 11-05-2017. Copy of
News Report dated 02.01.2019 on the official website of Indian
Express Farm loan waivers help reduce banks‘ priority sector
NPAs is annexed herewith and marked as Annexure P-18,
(pages to ) also to this the Syndicate Bank further
states about the negative effect of loan waiving on bank sector,
news report dated 10.01.2019 on the official website of
Economic times Syndicate bank hints that loan waiver may
challenge NPA reduction efforts. Copy of News report dated
17.03.2018 on the Official website of Economy Times Banks' NPA
steadily rising for past 8 years: Shiv Pratap Shukla is annexed
herewith and marked as Annexure P-19,(pages to ).
26. As on December 31, 2017, the gross Non-Performing
Assets (NPAs) of all the banks in the country amounted to Rs.
8.40 trillion. We are mentioning here the name of top 13 Public
Sector Banks which have highest share in the gross NPA;
Bank Name Gross NPA
1.State Bank of India Rs. 2.01 trillion

2. Punjab National Bank Rs. 552 billion
3. IDBI Bank Rs. 445 billion
4. Bank of India Rs.434 billion
5. Bank of Baroda Rs. 416 billion
6. Union Bank of India Rs. 380 billion
7. Canara Bank Rs. 377 billion
8. Central Bank of India Rs. 324 billion
9. Indian Overseas Bank Rs. 317 billion
10. UCO Bank Rs. 243 billion
11. Allahabad Bank Rs. 231 billion
12. Andhra Bank Rs. 215 billion
13. Corporation Bank Rs. 218 billion
The highest amount of gross NPAs is held by the country's
largest lender SBI amounts Rs. 2.01 trillion which is equal to
24.39% of the gross NPAs. Other Public Sector Bank includes;
Punjab National Bank (PNB) holds Rs. 552 billion and IDBI Bank
has Rs. 445 billion.It is interesting to know that Public Sector
Banks accounted for 88.74%of the total gross NPAs in December
2017 and top 5 among these banks is responsible for 46.76%
share of the gross NPA.Contrary to 19 PSBs, 21 private sector
banks have total gross NPAs of Rs 93,044 crore. 19 out of 21
private bank‘s gross NPAs is less than 1%, while only two PSBs-
Sind Bank and Vijaya Bank can claim this achievement.The
biggest reason behind the increasing NPAs of the Public Sector
Banks is the political interference in the functioning of the Public
Sector Banks.As of now Public Sector Banks and NPAs have

almost become synonymous. So there is an urgent need to do
appropriate banking reforms in the country.
27. Bad loans of the 38 listed banks collectively crossed Rs
10.17 lakh crore in Q4 FY18, which is not good for country‘s
economy report dated 31.05.2018 on the official website of The
Business today Bad loans of 38 listed banks collectively crossed
10.17 lakh crores in 4th quarter of financial year ending 2018.
Copy of news report dated 12.07.2018 on the official website of
RBI BANK Fiscal Position of State Governments is annexed
herewith and marked as Annexure P-20,(pages to ).
All the 38 listed banks accounted for gross NPAs totaling over Rs
10.17 lakh crore in the quarter ended March.Last week, a CARE
Ratings report had pointed out that the non-performing assets of
26 listed banks stood at Rs 7.31 lakh crore as per their declared
Q4 FY18 results. Since then, all the 12 remaining listed banks
have also announced their results, including Bank of Baroda,
Andhra Bank, Corporation Bank and private lenders like City
Union, Dhanlaxmi and KarurVysya. And the sorry figure has just
snowballed further. All the 38 listed banks accounted for gross
NPAs totaling over Rs 10.17 lakh crore in the quarter ended
March. In comparison, the gross NPAs of all the banks in the
country had amounted to Rs 8.40 lakh crore as on December 31,
2017.Worryingly, the daily Times of India added that in the
financial year 2014-15 banks could only recover 11.85 percent -
or Rs 6,968 crore - of the written-off accounts in that year. The
recovery figure improved slightly to 13.8 per cent the following
fiscal, or Rs 9,717 crore. Furthermore, the amount being

written-off is increasing every year by an average of around Rs
12,000 crore. This is significant because banks deduct the
written off amount from their gross NPA total. Imagine how
much worse the bad loan problem would appear otherwise.Of
course, it is worth remembering that the apex bank's revised
framework for resolving stressed assets, announced in February,
has played a major role in causing a jump in the NPAs. Hence,
the total provisions made during the year by the banks
cumulatively have also gone through the roof and their
profitability has taken a beating.From 21 Banks, only 2 Banks
reported profit in year ended 31st March 2018.
As can be seen from the table below, only two PSBs reported a
net profit in the year ended March 31 2018Vijaya Bank and
Indian Bank. The remaining 19 state-owned banks collectively
posted a net loss of over Rs 87,583 crore. In other words, these
banks ran up a loss of almost Rs 10 crore per hour during the
last fiscal.
Bank Net Loss FY18

State Bank of India 6547.45cr
Punjab National Bank 12282.82cr
Bank of India 6043.71cr
Bank of Baroda 2431.81cr
Allahabad Bank 4674.37cr
Andhra Bank 3412.53cr
Uco Bank 4436.37cr

IDBI Bank 8,238cr
Union Bank of India 5247cr
Central Bank of India 5104.91cr
Bank of Maharashtra 1373cr
Indian Overseas Bank 6299.49cr
Corporation Bank 4053.94cr
United Bank of India 1454.44cr
Oriental Bank of Commerce 5,872cr
Syndicate Bank 3223cr
Canara Bank 4,222cr
Punjab and Sind Bank 743.80cr
Dena Bank 1923 .15cr
ThePSBs that posted a profit

Vijaya Bank Rs727.02cr
IndianBank Rs1258.99cr
28. QUESTION OF LAW:-
That the following substantial question of law arises in this
petition for the consideration of this Hon‘ble Court:
(i) Whether the Respondents are rightly
permitting/doing WRITING OFF OF NPA‘s of Bank‘s
which is like camouflaging/tampering of financial
statements and annual Balance sheets which is
hiding the true and exact financial conditions of the
banks ?
(ii) Whether the Respondents have right in waiving of or
reduction of loans ?
(iii) Whether the Political parties can be permitted to
freely offer the manipulation of funds in Economy
through loan waiving and other monetary schemes in
their election manifestos ?
(iv) Whether the Central Government and State
governments should be asked to formulate an
agricultural policy of one district one agricultural
product based production and the state government
buy the produce at an average market fixed price

or any other policy which can make agriculture and
farming a profitable sector or establishes agriculture
as an profitable industry for better economic
condition of farmers ?
Hence the petitioner pray for the issuance of such
direction on the following grounds, and also such
other grounds as may be urged at the time of
hearing.
GROUNDS
A. That the Banks should be instructed to stop the practice of
TECHNICAL WRITING OFF OF NPA‘s so that the true and
exact financial conditions of the banks cannot be
camouflaged.
B. The System of waiving of loans should be stopped. The
Centre and State governments should not be permitted to
reduce or waive off loans.
C. Political parties should not be permitted to offer or
reducing any loan waiving schemes in their election
manifestos.
D. The Central Government and State governments should be
asked to formulate an agricultural policy of one district one
agricultural product based production at an average fixed
price offer by government to buy that produce or any other
policy which can help to convert agriculture and farming
into a profitable sector, which can help farmer to have a
better economic and living condition with a bright future in
agriculture and farming sector.

E. BECAUSE there is need to check the Funds in Economy due
to rising Fiscal deficits of states.
F. BECAUSE the Respondents have failed in its duty to ensure
transparency and fairness regarding the present issue.
G. That the present petition is bona-fide and the same may
be allowed in the Economic interests for citizens of this
country.
H. The Petitioner humbly requests indulgence of this Hon‘ble
Court to file further documents and to raise any other or
further ground(s) during the course of argument of the
present petition.
I. That the Petitioner has not filed any other or similar
petition in this Hon‘ble Court or any other Court claiming
the same relief.
PRAYER
The petitioner therefore pray that in the facts and circumstances
of the present case, this Hon‘ble Court may be pleased:-
a. To issue a writ of mandamus or any other
writ/order/direction of like nature, therefore directing
the respondents to implement the following suggestions
made by the Petitioner, and for seeking further
directions in this regards.
(i) That the Banks should be restrained from
TECHNICAL WRITING OFF OF NPA‘s so
that the true and exact financial
conditions of the banks cannot be
camouflaged.
(ii) The Banks should not be given any
benefit of allowable provision or other in

percentage to their Non Performing
Assets (NPA) which reduces their tax
liabilities.
(iii) The System of waiving of loans should be
stopped. The Centre and State
governments should not be permitted to
reduce or waive off loans.
(iv) Political parties should not be permitted
to offer loan waiving schemes or any
other monetary schemes in their election
manifestos.
(v) The Central Government and State
governments should formulate such an
agricultural policy which can make
agriculture a profitable industry and
assist farmer to become financially
prosperous and increases his interest in
agriculture and farming sector.
AND FOR THIS ACT OF KINDNESS THE PETITIONER ABOVE

NAMED AS IN DUTY BOUND SHALL EVER PRAY.
DRAWN BY FILED BY
Mrs. REENA.N. SINGH
Advocate
PREETI SINGH
(ADVOCATE FOR PETITIONER)
FILED On: 05.04.2019
IN THE HON’BLE SUPREME COURT OF INDIA
ORIGINAL WRIT JURISDICTION
WRIT PETITION (CIVIL) ________ OF 2019
IN THE MATTER OF:-
Mrs. REENA.N.SINGH
…PETITIONER
VERSUS
UNION OF INDIA AND ORS. …RESPONDENT
AFFIDAVIT
I Mrs. Reena.N. Singh, 207-208, Deep Plaza Near Civil Court
Gurgaon-122001, presently at New Delhi, do hereby solemnly
affirm, declare and depose as under:-
1) That I am the Petitioner in the present case and am well

conversant with the facts of the case and am competent to
swear this affidavit.
2) That the contents of the accompanying Writ Petition pages

_1 to 36 Paragraph 1 to 28 Grounds A to I. Synopsis and
list of dates from page B to G and accompanying
application(s) are true and correct to the best of my
knowledge and belief and nothing has been concealed
there from.
3) The Annexures annexed herewith are true copies of the

respective originals.
4) That there is no personal gain, private motive or oblique

reason in filing the present public interest litigation.
DEPONENT
VERIFICATION:-
Verified at New Delhi on this 4th day April 2019, that the
contents of my affidavit are true and correct to my knowledge,
belief and no part of it is false and nothing has been concealed
there from.
DEPONENT
ANNEXURE P-1
WIKIPEDIA
Year: 1990
FIRST AGRICULTURAL LOAN WAIVE OF Rs. 10000 CRORES
Loan waivers for loans taken by farmers are unique to India.
Economists have generally regarded this to be a populist and
fiscally risky measure that can cause long term problems. The
Loan Waivers can constitute a significant fraction of the GDP.
The first nation-wide farm loan waiver was implemented in 1990
by Janata Party government led by then Prime Minister V.P.
Singh and cost the government Rs 10,000 crores. A number of
agitations by farmers have been held demanding loan waivers,
and the political parties have capitulated or competed by
announcing Loan waivers for farmers.
(TRUE COPY)
ANNEXURE-P-2
QUARTZ INDIA
June 14, 2017
All the losers in the great Indian game of farm-loan waivers.
India‘s agrarian heartland is in deep distress and the farmers are
up in arms.In early June, Maharashtra witnessed massive
protests by the state‘s 13.6 million strong farming community,
which demanded a loan waiver. Farmers in the western Indian
state went on the rampage, vandalising vehicles and pouring
litres of milk onto state highways. Rattled, chief minister
Devendra Fadnavis announced farm loan waivers amounting to
at least Rs30,000 crore. In neighbouring Madhya Pradesh (MP),
farmer protests for loan waivers have turned deadly. On June
07, five people were shot dead by police at a protest
rally.Meanwhile, on April 04, the Bharatiya Janta Party (BJP)
government in Uttar Pradesh, the country‘s most populous state,
also announced a farm waiver, fulfilling a pre-poll promise it had
given to a troubled farm sector.India‘s farmers have had a rough
ride over the last decade. Prices of seeds and fertilizers have
remained high, even as droughts have hit production, and
middlemen abused farmers by buying produce for low prices.
The Narendra Modi government‘s demonetization move last
November also took the wind out of the hinterland. In effect,
farming income is down and loan servicing has become
difficult.Farm loans include all borrowings extended by banks
and financial institutions to farmers, including short- and

medium-term crop loans and other long-term credit facilities.
These loans are typically used by farmers for buying fertilizers,
seeds, irrigation equipment, and even for transporting the
produce. The maximum interest rate that banks can charge for
farm loans is 7%, and the government provides a subsidy of 3%
to farmers who are prompt in their repayments.So, while a loan
waiver should seem like a good idea for indebted farmers, there
is more than meets the eye.
(TRUE COPY)
ANNEXURE P-3
TIMES OF INDIA
15December, 2009
Farm loan waivers won LS polls for Cong
The UPA government‘s mega farm loan waiver scheme,
announced last year, has often been touted as a significant
factor in Congress‘s stunning victory in the 2009 parliamentary
elections. Now, there are numbers to back the claim. Figures
show that states which topped the list in waiving loans of
farmers are also those where Congress did surprisingly well in
the polls. Andhra Pradesh leads the chart with waivers totaling
Rs 11,353 crore. About 77.55 lakh farmers benefited from the
scheme. Congress bagged 33 LokSabha seats out of a total 42 in
the state, improving on its impressive 2004 tally of 29 seats.
Andhra Pradesh accounts for 17% of the total Rs 65,318 crore
written off by public sector banks (PSBs) so far under the debt
relief scheme announced by UPA-1 in 2008.Uttar Pradesh is
second among states and UTs with waivers amounting to Rs
9,000 crore to 54 lakh farmers, according to finance ministry
data. Congress claimed 21 seats in the state, ahead of BSP and
just two seats behind Samajwadi Party.Among other significant
states, Maharashtra clocked third position for having waived off
more than Rs 8,900 crore to 42 lakh farmers. Again, Congress
did well in the state and also returned to power in the assembly
polls. The connection between loan waivers and Congress‘s

performance works the other way round too. States where the
disbursement was comparatively low—Gujarat, Bihar, Himachal
Pradesh, Karnataka and Madhya Pradesh — sided with the
NDA.Enthused by the success of the scheme and the political
dividends it yielded, the UPA government has now extended it till
December 2009 from its earlier deadline of June.In the UPA
government‘s mega farm loan waiver scheme, announced last
year, disbursement to small and marginal farmers was meant to
be purely by eligibility. However, statistics throw up some
disturbing facts as well. States like Bihar and Punjab lag far
behind in terms of number of farmers having benefited from the
scheme. This may also suggest that small farmers in these
states are still marginalized when it comes to accessing
agricultural credit. Clearly, the task for UPA-II is cut out if it
wants to achieve its stated objective of inclusive growth.While
Bihar was at ninth position in the waiver chart with 17 lakh
farmers benefiting from the one-time settlement scheme and the
relief totaling Rs 3,158 crore, Punjab did not even figure among
the top ten. The waiver in this state amounted to Rs 1,223 crore,
extended to 18.44 lakh farmers.The scheme was announced in
the Union Budget 2008-09 and covered all agricultural loans
disbursed by scheduled commercial banks, regional rural banks
and cooperative credit institutions to small and marginal
farmers.According to the finance ministry, at least 3.69 crore
farmers benefited from the scheme till November 2009. The
government claims that all eligible farmers have been covered.
(TRUE COPY)
ANNEXURE-P-4
FEDERAL RESERVE BANK OF SAN FRANCISCO
September 11, 2017
India‘s Farm Loan Waiver Crisis
India‘s annual economic growth exceeds 7% and the country
just passed sweeping tax reforms. Despite this progress, it faces
a growing crisis over farm lending. Farmers are demanding loan
waivers that may cost up to 2.6% of GDP. They‘ve captured
headlines with their protests, destroying milk and agricultural
produce and taking even more extreme measures. Although
India‘s agricultural sector is in distress, loan waivers are a costly,
temporary solution to complex problems and will likely further
strain the country‘s public sector banks, already stressed by
asset quality problems.Seeds of Crisis: Following a good
monsoon in 2016, farmers expected a prosperous year,
particularly after droughts in both 2014 and 2015 caused
significant suffering in the countryside. However, a combination
of the sector‘s long-standing structural weaknesses, export
restrictions, a worldwide glut in farm commodities, and
demonetization, meant that a bumper crop led instead to a
collapse in prices. Amid this backdrop, Prime Minister Modi
promised to waive farmer loans in the run-up to state elections
in Uttar Pradesh. When the state minister announced the
fulfillment of this promise in April, farmers in other states began

agitating for loan waivers, leading to the current crisis. India‘s
agricultural sector‘s problems are long-standing: the country
suffers from small, inefficient land plots. Less than half of the
country‘s farmland is irrigated. While the harvest was plentiful
this year, inadequate infrastructure for transportation and
storage meant farmers could not get their goods to market or
store their crops to wait for better prices. An estimated one-third
of India‘s farm harvest spoils every year because there is not
enough storage and supply chain infrastructure.
(TRUE COPY)
ANNEXURE P-5
ECONOMY TIMES
01February, 2017
Arun Jaitley proposes tax concessions for banks grappling with
NPAs in Budget 2017
In a big relief to banks struggling with bad loans, the
government today proposed tax concession on provisions for
NPAs while announcing capital infusion of Rs 10,000 crore for
state-owned lenders.It also proposed that tax on interest will be
levied on actual receipts and not on accrual basis in respect of
Non Performing Asset (NPA) or bad loan accounts.BSE banking
index surged 2.76 per cent, a full percentage point more than
the BSE Sensex itself.Presenting Union Budget 2017-18 in
Parliament, Finance Minister ArunJaitley said: "In order to give a
boost to banking sector, I propose to increase allowable
provision for Non-Performing Asset from 7.5 per cent to 8.5 per
cent. This will reduce the tax liability of banks."He also proposed
to tax interest receivable on actual receipt instead of accrual
basis in respect of NPA accounts of all nonscheduled cooperative
banks as well, at par with scheduled banks.Currently banks can
claim deduction in respect of provision for bad and doubtful
debts.Jaitley also announced that Rs 10,000 crore will be infused
in public sector banks in the next fiscal and more will be
provided if required."As per the Indradhanush plan, the public
sector banks will be provided with Rs 10,000 crore in the next
fiscal. Additional allocation would be made if required," he

said.Under Indradhanush roadmap announced in 2015, the
government will infuse Rs 70,000 crore in state banks over four
years while they will have to raise a further Rs 1.1 lakh crore
from the markets to meet their capital requirement in line with
global risk norms, known as Basel--III.In line with the blueprint,
public sector banks has been given Rs 25,000 crore in each
fiscal, 2015--16 and 2016--17. Besides, Rs 10,000 crore each
would be infused in 2017--18 and 2018--19. The government
has already announced fund infusion of Rs. 22,915 crore, out of
the Rs 25,000 crore earmarked for 13 PSBs for the current fiscal.
Of this, 75 per cent has already been released to them. The first
tranche was announced with the objective of enhancing their
lending operations and enabling them to raise more money from
the market.
(TRUE COPY)
ANNEXURE P-6
THE INDIAN EXPRESS
February 7, 2017
Technical write-off creates non-transparency, brings wrong-
doings, says KC Chakrabarty
Chakrabarty spoke about the need for segment-wise disclosure
of write-offs and top 100 borrowers and mismanagement in
tackling bad loans. While the Economic Survey unveiled by the
government last week said that ―large write-offs will be required
to restore viability to the large IC1 companies (those companies
whose earnings do not even cover their interest obligations)‖,
former Reserve Bank Deputy Governor KC Chakrabarty has
questioned the practice of ―technical write-offs‖ stating such
write-offs are scandals that create non-transparency, destroy the
credit risk management system and bring all types of wrong-
doings into the system.Why do you think technical write-off by
banks is a bad idea?The word ‗technical write-off‘ is not used
anywhere in the world. What‘s there to write off? We have
invented two words. We don‘t consider ‗technical write-off‘ as
write-off… as use it as per our convenience. There‘s nothing like
technical write-off. It‘s non-transparent and it‘s without any
policy. There‘s possibility of wrong-doing. Write-off is legitimate
financial tool. If the borrower doesn‘t pay back the money and if
you‘re (bank) not able to recover that money, you have to write
off that loan. That‘s when all of a sudden some crisis has
happened, but write-off is less and generally banks make the
provisions. I have nothing against write-off but it‘s to be done

scarcely and within a policy with all efforts to recover the money.
Any asset which is backed up by tangible asset is never written
off. Secondly, you must be subject to scrutiny for these write-
offs. There must be a policy. You ask any bankers. They have
written off Vijay Mallya‘s loan. Then how are they going to
recover that money? All I am saying is that write off the loan as
per the policy but that has to be done by somebody who is
authorised to do it. Use it very sparingly and do it where it‘s
essential. If there‘s asset, why are you writing it off?
(TRUE COPY)
ANNEXURE P-7
SCROLL.IN
23June, 2017
Farm loan waivers are not the same as corporate NPAs–and it‘s
tough to say which is worse, While both have huge monetary
implications, farm loans directly come from the state budget
while corporate non-performing assets have some hope of
recovery.Karnataka became the latest state to announce a loan
waiver for farmers, saying this week that it would waive off Rs
8,165 crore worth of agricultural loans taken from co-operative
banks. The move came following similar and much bigger
waivers from other states including Punjab, Maharashtra and
Uttar Pradesh, while demands for similar schemes are starting to
echo around the country. Not everyone is happy about the
waivers: On Thursday, Union Minister Venkaiah Naidu called
them a ―fashion‖ and said they should only be used for
emergencies. But the counter debate has also been strong, with
one of the central arguments saying governments are hesitant to
help out needy farmers, even as large companies with huge non-
performing assets are being offered bailouts. ―Agriculture is
indeed a state subject,‖ wrote analyst Devinder Sharma, ―but
when it comes to industry, which is also a state, subject, the
finance ministry has no qualms about writing-off of the massive
bad debt.‖ Many argue that the government has given banks a
free hand in lending to big corporate clients.
(TRUE COPY)
ANNEXURE P-8
FIRST POST
16 April, 2018
NPA crisis: Loans worth Rs 2.72 lakh cr written-off since NDA
government took over in 2014; just Rs 29,000 cr recovered.
Over a roughly three-and-a-half year period, from when
NarendraModi took charge as Prime Minister in mid-2014, to the
end of December 2017, India‘s public sector banks (PSBs) have
written-off loans worth Rs 2,72,558 crore. Of the amount, a
meagre Rs 29,343 crore has been recovered, according to data
available with the Reserve Bank of India (RBI).Of the write-offs,
the biggest in a year happened at the Mumbai-traded State Bank
of India (SBI), which wrote off Rs 31,096 crore in the nine
months to 31 December, 2017.PSBs recovered a total of Rs
15,786 crore over a twenty-one month period ended 31
December 2017 (the first nine months of FY18 and all of FY17
put together). This data was submitted by the Minister of State,
Finance, Shiv PratapShukla, on 27 March, 2018, in Parliament.
Bank Loan write-offs in Rs crore Recovery of loan
in Rs crore
FY 15 FY 16 FY 17 FY 18 FY FY FY FY 18
15 16 17
AllahabadBank 2109 2126 2442 2856 257 0 0 0
AndhraBank 1124 814 1623 957 76 0 0 112
BankofBaroda 1563 1554 4348 3106 0 221 327 367

BankofIndia 866 2374 7346 7094 363 243 255 238
BankofMaharas 264 903 1374 1817 98 68 38 69

htra
CanaraBank 1472 3387 5545 3513 1693 313 489 753
CentralBankof 1386 1334 2396 1714 0 111 121 262

India
CorporationBa 779 2495 3574 3942 99 106 136 221
nk
DenaBank 515 760 833 435 34 66 115 56
IDBIBankLimit 1609 5459 2868 6632 54 140 159 126

ed
IndianBank 550 926 437 1122 0 353 150 182
IndianOversea 2087 2067 3066 3250 0 7 1 2

sBank
OrientalBanko 925 1668 2308 2500 431 234 291 149
fCommerce
PunjabandSin 263 335 491 280 42 34 26 38
dBank
PunjabNationa 5996 6485 9205 6128 1017 2298 2133 822
lBank
SyndicateBank 1055 1430 1271 1607 465 387 376 307
StateBankofIn 23973 19944 27574 31096 317 3093 3765 3221

dia
UCOBank 0 1573 1937 2577 0 0 0 0
UnionBankofI 931 792 1264 2244 317 186 19 18

ndia
UnitedBankofI 761 649 714 464 61 111 127 82
ndia
VijayaBank 791 510 1068 938 137 127 153 83
TOTAL 49018 57585 81683 84272 5461 8096 8680 7106
(TRUE COPY)
ANNEXURE P-9
THE JAGRANJOSH
04 May, 2018
List of Public Sector Banks which have highest share in NPA
Accordingly to RBI, with effect from March 31, 2004, a Non-
Performing Asset (NPA) shall be a loan or an advance where;As
on December 31, 2017, the gross Non-Performing Assets (NPAs)
of all the banks in the country amounted to Rs. 8.40 trillion.The
industry accounts for highest NPA, Rs. 6.09 trillion or 20.41% of
the gross advances given by the scheduled commercial banks.
Service sector accounts for Rs. 696 billion (6.53%) and
agriculture and allied activities is holding the NPA of Rs. 149
billion.
List of top 15 Private Sector Banks in India
In this article we are publishing the name of top 13 Public Sector
Banks which have highest share in the gross NPA;
Bank Name Gross NPA
1.State Bank of India Rs. 2.01 trillion
2. Punjab National Bank Rs. 552 billion
3. IDBI Bank Rs. 445 billion
4. Bank of India Rs.434 billion
5. Bank of Baroda Rs. 416 billion
6. Union Bank of India Rs. 380 billion

7. Canara Bank Rs. 377 billion
8. Central Bank of India Rs. 324 billion
9. Indian Overseas Bank Rs. 317 billion
10. UCO Bank Rs. 243 billion
11. Allahabad Bank Rs. 231 billion
12. Andhra Bank Rs. 215 billion
13. Corporation Bank Rs. 218 billion
The highest amount of gross NPAs is held by the country's
largest lender SBI amounts Rs. 2.01 trillion which is equal to
24.39% of the gross NPAs. Other Public Sector Bank includes;
Punjab National Bank (PNB) holds Rs. 552 billion and IDBI Bank
has Rs. 445 billion.It is interesting to know that Public Sector
Banks accounted for 88.74% of the total gross NPAs in
December 2017 and top 5 among these banks is responsible for
46.76% share of the gross NPA.Contrary to 19 PSBs, 21 private
sector banks have total gross NPAs of Rs 93,044 crore. There are
19 out of 21 private bank‘s gross NPAs is less than 1%, while
only two PSBs- Sind Bank and Vijaya Bank can claim this
achievement. The biggest reason behind the increasing NPAs of
the Public Sector Banks is the political interference in the
functioning of the Public Sector Banks.As of now Public Sector
Banks and NPAs have almost become synonymous. So there is
an urgent need to do appropriate banking reforms in the
country.
(TRUE COPY)
ANNEXURE P-10
BUSINESS TODAY
21 May, 2018
Private banks record 450 per cent jump in NPAs, ICICI Bank tops
the list: Report
Non-Performing Assets or NPAs are on a rise in private sector
banks. In last five years, private banks have recorded a 450 per
cent jump in gross NPAs. According to a report in the Indian
Express, the gross NPAs of private banks have grown from Rs
19,800 crore in FY 2013-2014 to Rs 109,076 crore in March
2018.Among the banks that have accumulated a massive rise in
bad loans are ICICI Bank, Axis Bank, HDFC Bank, Kotak
Mahindra Bank, Federal Bank and Yes Bank. ICICI Bank topped
the NPA list with Rs 54,063 crore in bad loans. It has recorded a
514 per cent jump in NPAs in five years - from Rs 10,506 crore
in FY 2013-14 to Rs 54,063 crore in March 2018, the IE report
said. Axis Bank registered a 988 per cent jump in its bad debts
in last five financial years. The Bank's bad loans have gone up
from Rs 3,146 crore in FY 2013-14 to Rs 34,249 crore in FY
2017-18, the report said. The RBI had recently slapped a penalty
of Rs 3 crore on Axis Bank for violations of NPA classification.
According to the report, HDFC Bank's bad loans jumped from Rs
2,989 crore to Rs 8,607 crore in the last five financial years.
Kotak Mahindra Bank's gross NPA rose from Rs 1059 crore to Rs
3825 crore during the same period. Yes Bank's NPAs went up
from Rs 175 crore in FY 2013-14 to Rs 2627 crore in 2018. Last

year, the RBI in a risk assessment found that Yes Bank had
under-reported its NPAs by Rs 6350 crore. Yes Bank is not alone
in under-reporting NPAs. From ICICI to HDFC to Axis Bank, all
have faced flak from the RBI for asset divergence. In March
2017, the RBI in its assessment had found that HDFC had under-
reported its NPAs by Rs 2052 crore. This year in February, the
apex bank restructured the asset classification rules for early
identification and reporting of NPAs. After the changes in rules,
banks will now have to work out a resolution plan for defaults
within 180 days. Not only this, the regulator has also sought to
reclassify loans given by a consortium as non-performing for all
the lenders involved if it was considered non-performing on the
books of one of them.RBI Deputy Governor NS Vishwanathan
had recently said that some banks were not following the rules
of asset classification properly. He further said that the
divergences used to happen earlier as well, but what has
changed the narrative now is the mandatory disclosure of the
divergences. The top bank last year made it mandatory for the
lenders to report if the difference between its disclosed numbers
and the RBI's risk assessment findings exceed 15 per cent.
(TRUE COPY)
ANNEXURE P-11
THE BUSINESS TODAY
31 May, 2018
Bad loans of the 38 listed banks collectively crossed Rs 10.17
lakh crore in Q4 FY18
Last week, a CARE Ratings report had pointed out that the non-
performing assets of 26 listed banks stood at Rs 7.31 lakh crore
as per their declared Q4 FY18 results. Since then, all the 12
remaining listed banks have also announced their results,
including Bank of Baroda, Andhra Bank, Corporation Bank and
private lenders like City Union, Dhanlaxmi and KarurVysya. And
the sorry figure has just snowballed further. All the 38 listed
banks accounted for gross NPAs totaling over Rs 10.17 lakh
crore in the quarter ended March. In comparison, the gross NPAs
of all the banks in the country had amounted to Rs 8.40 lakh
crore as on December 31, 2017.There's more bad news. In
response to an RTI filed by The Times of India, the RBI disclosed
that the scheduled commercial banks (SCBs) cumulatively wrote
off as much as Rs 2.25 lakh crore through the five-year period
that ended in March 2016. These SCBs - covering private
lenders, PSBs, foreign banks, regional rural banks and some co-
operative banks-account for over 95 per cent of the total formal
credit disbursed in the country.Worryingly, the daily added that
in the financial year 2014-15 banks could only recover 11.85
percent-or Rs 6,968 crore-of the written-off accounts in that
year. The recovery figure improved slightly to 13.8 per cent the
following fiscal, or Rs 9,717 crore. Furthermore, the amount
being written-off is increasing every year by an average of
around Rs 12,000 crore. This is significant because banks deduct
the written off amount from their gross NPA total. Imagine how
much worse the bad loan problem would appear otherwise.Of
course, it is worth remembering that the apex bank's revised
framework for resolving stressed assets, announced in February,
has played a major role in causing a jump in the NPAs. Hence,
the total provisions made during the year by the banks
cumulatively have also gone through the roof and their
profitability has taken a beating.As can be seen from the table
below, only two PSBs reported a net profit in the year ended
March 31- Vijaya Bank and Indian Bank. The remaining 19 state-
owned banks collectively posted a net loss of over Rs 87,583
crore. In other words, these banks ran up a loss of almost Rs 10
crore per hour during the last fiscal. No wonder they are only
able to offer their employees a wage hike of 2 per cent.In the
bargain, the rest of us have to deal with a crippling two-day
bank strike by the protesting employees. Nearly 10 lakh
employees - from not just the PSBs but also 13 old-generation
private sector banks, six foreign banks and 56 regional rural
Bank Net Loss FY18

State Bank of India 6547.45crore
Punjab National Bank 12282.82cr
Bank of India 6043.71cr
Bank of Baroda 2431.81cr
Allahabad Bank 4674.37cr
Andhra Bank 3412.53cr

Uco Bank 4436.37cr
IDBI Bank 8,238cr
Union Bank of India 5247cr
Central Bank of India 5104.91cr
Bank of Maharashtra 1373cr
IndianOverseas Bank 6299.49cr
Corporation Bank 4053.94cr
United Bank of India 1454.44cr
Oriental Bank of Commerce 5,872cr
Syndicate Bank 3223cr
Canara Bank 4,222cr
Punjaband Sind Bank 743.80cr
Dena Bank 1923 .15cr
The PSBs that posted a profit

Vijaya Bank Rs727.02cr
IndianBank Rs1258.99cr
banks across the country - boycotted work yesterday, according
to the All India Bank Employees Association. "The strike call
evoked good response. About 85,000 bank branches spread
across the country were closed," the union's general
secretary,C.H. Venkatachalam told IANS. More of the same is
expected to play out today, unless the Indian Banks Association
agrees to their demand for an expeditious and adequate wage
revision settlement for all employees, including general
managers.
(TRUE COPY)
ANNEXURE P-12
RBI
24 July, 2018
Bank-wise details of gross NPAs as of March 2018, and operating
profit, provision done and net profit/loss in FY 2017-18, are
given below:
S. Bank As on FY 2017-18 Amounts in crore Rs.

31.3.2018
No. Gross NPA Operating Provisioning Net
ratio (%) profit done profit(amounts
with a minus
sign are
losses)
1 Allahabad Bank 16.0 3,438 8,113 -4,674
2 Andhra Bank 17.1 5,361 8,774 -3,413
3 Bank of Baroda 12.3 12,006 14,437 -2,432
4 Bank of India 16.6 7,139 13,183 -6,044
5 Bank of 19.5 2,191 3,337 -1,146
Maharashtra
6 Canara Bank 11.8 9,548 13,770 -4,222
7 Central Bank of 21.5 2,733 7,838 -5,105
India
8 Corporation 17.4 3,950 8,004 -4,054
Bank
9 Dena Bank 22.0 1,171 3,094 -1,923
10 IDBI Bank 28.0 7,905 16,142 -8,238
Limited
11 Indian Bank 7.4 5,001 3,742 1,259
12 Indian Overseas 25.3 3,629 9,929 -6,299

Bank
13 Oriental Bank of 17.6 3,703 9,575 -5,872
Commerce
14 Punjab & Sind 11.2 1,145 1,889 -744
Bank
15 Punjab National 18.4 10,294 22,577 -12,283
Bank
16 State Bank of 10.9 59,511 66,058 -6,547
India
17 Syndicate Bank 11.5 3,864 7,087 -3,223
18 UCO Bank 24.6 1,334 5,771 -4,436
19 Union Bank of 15.7 7,540 12,787 -5,247
India
20 United Bank of 24.1 1,025 2,479 -1,454
India
21 Vijaya Bank 6.3 3,098 2,371 727
(TRUE COPY)
ANNEXURE P-13
BUSINESS STANDARD
24 October, 2018
What was RBI doing, asks CAG Rajiv Mehrishi on NPA crisis in
banks
Comptroller and Auditor General of India (CAG) Rajiv Mehrishion
Tuesday questioned the role the of Reserve Bank of India in the
present banking crisis, asking what the regulator was doing
when the banks were lending huge amounts that resulted in
asset-liability mismatch and huge bad loans.The banking sector
had non-performing assets (NPAs) or bad loans worth over Rs
9.61 trillion by the end of 2017-18, according to government
data. "In the present banking crisis, we all have a narrative
about how it can be sorted out, recapitalization of course, which
is a very strange word to be used for the subsidies, but nobody
is asking the real question that what actually the regulator
(Reserve Bank) was doing. What is its role, what is its
responsibility?," he asked while speaking a the launch of Indian
School of Public Policy (ISSP).The major cause of current
banking crisis is huge asset liability mismatch; but nobody is
talking about this, there is a lack of public policy debate,
Mehrishi said.He said India lacks a flourished bond markets in
absence of which the banks are forced to lend to long-gestation
infrastructure projects. And when these projects run into any
hurdle, their difficulties percolate into the difficulties of the
banks, he said.The CAG also pointed out that there is a lack of

public policy debate or a narrative on the root causes of the
banking crisis; and also, nobody is talking or writing about the
role of the regulator.Despite from banks' own mismanagement
as well as theft of public money which are amongst the reasons
behind the banking sector mess, there is much more to this
which is complex to understand, he said further."If the banks
were going berserk with their lending, then what was the
regulator doing? And if it (regulator RBI) is accountable for this
crisis or not, that is also a narrative nobody is talking about," he
said.Of the over Rs 9.61 trillion banking sector NPAs as on March
31, 2018, Rs 853 billion emanated from agriculture and allied
activities while the bulk of Rs 70.3 million originated from loans
to the industrial sector.Speaking on economic reforms and the
centre-state relationships in enacting changes, the chairman of
the 14th Finance Commission and former Revenue Secretary N K
Singh said the centre alone cannot bring about the economic
overhauling."The economic reforms cannot merely be taken by
the central government.For example labour reforms and the land
reforms, it has been left to the skills of state government what
they want to enact and believe the changes needed for economic
reforms," Singh said.He also talked about the pedagogy built
around the centre-state relationships and the unfinished agenda
of India's important economic reforms and said mere tinkering
will not do and deep structural reforms are needed.He said India
dearly needs the structural reforms and a lot of these relate to
what the state governments can do in this direction.The Indian
School of Public Policy will begin its first batch of one-year full-
time programme in public policy, design and management to

professionals with 2-3 years of relevant experience from
2019.The school intends to develop a new class of policy leaders
for India by equipping policy professionals with knowledge, skills,
wisdom and ethics to understand, design and implement local
solutions to India's enduring policy and governance challenges,
ISPP said.
(TRUE COPY)
ANNEXURE P-14
THE TIMES OF INDIA
28 December, 2018
Over 6,000 officers of PSBs held responsible for bad loans in
FY18: Jaitley
The government Friday said action has been taken against more
than 6,000 officers of nationalised banks last fiscal in cases of
lapses that led to bad loans. In written reply, Finance Minister
ArunJaitley said that minor and major penalties have been
imposed against erring officials. These include dismissal,
compulsory retirement and demotion. "As per the inputs
received from nationalized banks, in FY 2017-18, 6,049 officers
have been held responsible on account of staff delinquency in
NPA accounts," Jaitley said. Depending upon the gravity of
lapses, the minister said "minor penalty/ major penalty have
been imposed against erring officials" and in all the cases,
depending upon the amount involved, CBI and police complaints
have been lodged. The 19 nationalised banks, including PNB and
Canara Bank, reported a net loss of Rs 21,388 crore in the first
half of the fiscal. This compares with a combined loss Rs 6,861
crore in the similar period of 2017-18.Meanwhile, Minister of
State for Finance Shiv PratapShukla said that no loan account of
state-owned banks with outstanding of over Rs 25 crore has
been "declared as evergreen" since June 2014. In another
written reply to the lower House, Shukla said as a result of
transparent recognition of bad loans, the non-performing asset

(NPA) amount of all commercial banks rose from Rs 5.66 lakh
crore at end-March 2016 to Rs 9.62 lakh crore at end of March
2018. Since then the amount has declined to Rs 9.43 lakh crore.
He further said the public sector banks have reported a "record
recovery" of Rs 60,713 crore in the first half of the current
financial year. This, he said, was double the amount recovered
by them during corresponding period of the last financial year.
NKD CS BAL
(TRUE COPY)
ANNEXURE P-15
LIVEMINT.COM
01 January, 2019
Syndicate Bank hints that loan waiver may challenge NPA

reduction efforts
KOCHI: Syndicate BankNSE 0.45 % has hinted that the spate of
farm loan waivers by several states in the recent times may
challenge its efforts to reduce NPA.The bank, which is hoping to
break even at the end of this fiscal year, has taken a series of
measures to bring down NPA level. ―We expect to reduce net
NPA from 6.9% to below 6 and the gross NPA from 12.9% to
below 12 at the end of the year,‘‘ said S Krishnan, executive
director of the bank.The bank has sizeable NPA exposure in
corporate and agriculture sectors. "The farm loan waiver is a
matter of concern for us and could make recovery difficult, he
said adding that it wouldn‘t hit the bank recovery measures.The
bank has started seven stress asset management branches in
the country with instructions to recover NPA above Rs 5 crore.
The stress asset management branch usually deal with NPA of Rs
50 crore and above.The bank is expecting a growth of 3 to 5% in
the current year. "We hope to move into the major bank
category in the next six months by taking our total business to
Rs 5 lakh crore,‘‘ Krishnan said. The bank recently proposed to
raise Rs 500 crore by issuing stock to its members under the
ESPS scheme. It is also looking at other avenues like rights and
bond issues to raise capital. Our capital is adequate for the
current needs. But we need capital for growth in future,‘‘ he
said.
(TRUE COPY)
ANNEXURE P-16
ECONOMICS TIMES
10 January, 2019
The equivalence of farm loan waivers and corporate NPAs
The problem of the spendthrift farmer and that of the flagrant
corporate firm are two sides of the same coin. A recent
newspaper headline read: ―Farmer BijayLallya arrested at IGI
Airport trying to flee the country over non-payment of bank
loans of ₹ 5 lakh." As you might have guessed, this headline is
made up. An instinctive reaction would be to ask—―How can
farm loan waivers have anything in common with Corporates‘
non-performing assets (NPAs)? Isn‘t one decision entirely
political and the other entirely commercial?" But first impressions
can be deceptive.A farm loan waiver is a sector-wide
extinguishing of loans mandated by the government, usually
before an election, with the exchequer compensating banks. On
the other hand, a corporate NPA represents a business failure,
for reasons internal and external, and triggers a bankruptcy
process to recover dues by financial creditors to the maximum
extent possible—either through resolution or through liquidation.
A bankruptcy process does not imply any liability of the
government, unless very large in magnitude. The government
obligation can be more pressing if NPAs originate in public sector
banks or are due from public sector corporations. A key
underpinning of bankruptcy procedures is the limited liability
clause that protects the assets of promoters unless explicitly

pledged. Corporate bankruptcy, therefore, is a simultaneous
process of cleansing bank balance sheets and a mechanism
allowing optimal risk-taking by entrepreneurs. Effective
functioning of a bankruptcy law is expected to enable the
generation of new cycles of credit, with credit flowing to better
projects in similar or entirely new sectors. On the other hand, a
farm loan waiver impedes the flow of such credit as structural
problems besetting agriculture are typically not addressed.
Couched in these terms, corporate bankruptcies and farm loan
waivers appear to have nothing in common. The equivalence
arises when conditions warrant that the state must indirectly
bear the burden of corporate NPAs by infusing funds into banks,
as had happened in the US following the 2008 financial crisis and
as is happening now in India. Equivalence can also be drawn
when the problem of corporate NPAs repeats itself in the same
sectors implying that, for some reason, banks keep lending to
the same sectors even in the absence of structural
improvements. Persistent problems in power and infrastructure
sectors and the fate of development finance institutions before
some of them converted to universal banks immediately come to
mind.
(TRUE COPY)
ANNEXURE P-17
BUSINESS TODAY.IN
15 January, 2019
Farm Loan Waivers and Corporate Defaulters are Two Sides of
the Same Coin
Why is Rs 1.84 lakh crore a "frightening challenge" for banks,
but Rs 10.17 lakh crores not?The great farm loan waiver debate
is back. The Congress kicked it off this time with the
announcement of waivers in the newly-elected governments of
Chhattisgarh, Madhya Pradesh, and Rajasthan. This was followed
up by similar announcements from BJP-ruled Gujarat and
Assam. Rahul Gandhi even went onto to demand a nation-wide
farm loan waiver from Prime Minister NarendraModi.As if on cue,
India‘s bankers and economists claim to be alarmed.United Bank
of India‘s MD, Ashok Kumar Pradhan, said, ―It is a deadly poison.
It‘s a wrong way of addressing the real issue.‖―It is not good for
the country‘s credit culture,‖ said MrutyunjayMahapatra,
managing director at Syndicate Bank.―Clearly, (this is) a
frightening challenge for Indian banks!‖ said SoumyaKantiGhosh,
SBI group‘s chief economic adviser, reacting to the information
that the combined waiver amount may be Rs 60,000-70,000
crore.The government‘s think-tank, the NITI Aayog, pointed out
that farm loan waivers only benefit 10-15% of all farmers, as the
rest do not have access to institutional loans.
(TRUE COPY)
ANNEXURE P-18
THE NEW INDIAN EXPRESS
02 January, 2019
Farm loan waivers help reduce banks‘ priority sector NPAs
Owing to this, the top three private carriers posted humongous
losses in second quarter of this fiscal.The bevy of farm loan
waivers being announced by states appears to have an unusual
beneficiary: banks. The proportion of bad loans in the priority
sector of scheduled commercial banks (SCB) fell from 47 per
cent in 2003 to 25 per cent in 2017, while NPAs of non-priority
sector shot up from 51 per cent to 75 per cent during the same
period. Similarly, among PSBs, if priority sector bad loans stood
at 47 per cent in 2003, they fell to 21 per cent in 2017.This
figure for SBI — the country‘s largest lender — reduced from 48
per cent to 20 per cent during the period. According to Nabard,
various state governments have announced their own schemes
for farm loan waivers, which banks implement as per the
operational guidelines issued by the concerned state
government. Notwithstanding the waivers, gross NPAs for
agriculture and allied activities of all SCBs for the last three
years, as reported by RBI, shot up from Rs 51,964 crore as on
March 2016 to Rs 85,482 crore on March 2018.Also, NSSO,
which conducted a situation assessment survey of agricultural
households in 2013, found that the average loan outstanding per
agricultural household stood at `47,000. It also estimated that
at the all-India level, 25.8 per cent of the loans were sourced
from money lenders, at steep interest rates. In order to prevent
a debt spiral, the government took initiatives to reduce the debt
burden of farmers, while credit was made available at a reduced
interest rate of 7 per cent. Farmers can also avail of an interest
subvention scheme from the Department of Agriculture
Cooperation and Farmers‘ Welfare for short-term crop loans up
to `3 lakh. This offers interest subvention of 2 per cent per
annum to banks on use of their own resources. Besides, an
additional 3 per cent incentive is given to farmers for prompt
loan repayment, reducing effective interest rate to 4 per
cent.Further, in order to discourage distress sales by farmers
and to encourage them to store their produce in warehouses
against warehouse receipts, the benefit of interest subvention
scheme has been extended to small and marginal farmers
having kisan credit cards and storing produce in accredited
warehouses up to six months post-harvest on the same rate as
available to crop loans. Farmers affected by natural calamities
also get relief like interest subvention and loan restructure.
These directions have been so designed that the moment a
calamity is declared, they are set in motion without any
intervention.
(TRUE COPY)
ANNEXURE P-19
THE ECONOMICS TIMES
17 March, 2018
Banks' NPA steadily rising for past 8 years: Shiv PratapShukla
The finance ministry today informed the Lok Sabha that bad
loans in the banking sector have been rising steadily for the past
eight years and in case of state-run banks it crossed Rs 7.77
lakh crore at December-end 2017.In different written replies in
the house, Minister of State for Finance Shiv Pratap Shukla said
gross non-performing assets (NPAs) under the 'Industry-Large'
category for all banks soared to Rs 5.27 lakh crore as on
December 2017 from Rs 1.23 lakh crore on March 31,
2015.Citing RBI data, the minister said the gross NPAs of public
sector banks on December 31, 2017 were Rs 7.77 lakh crore."As
per the RBI data, gross NPAs of scheduled commercial banks
have been rising steadily since the last eight financial years,"
Shukla said. In another reply, the minister said that corporate
lending by banks have increased from Rs 31.12 lakh crore in
March 2013 to Rs 40.66 lakh crore at December-end 2017.
(TRUE COPY)
CIVIL ORIGINAL JURISDICTION
WRIT PETITION (CIVIL) NO. OF 2019
IN THE MATTER OF:
Reena.N.Singh … Petitioner
Versus
Union of India & Others. …Respondents

TO,
HONBLE THE CHIEF JUSTICE OF INDIA AND
HIS COMPANION JUDGE OF THE SUPREME
COURT OF INDIA
THE HUMBLE PETITION OF THE PETITIONER

ABOVE NAMED
1. The present Writ Petition is being filed against the Political
parties to refrain/stop them from offering of
manipulation of public‘s funds by offering any kind of loan
waiving or monetary schemes in their election manifestos
to attract voters.
2. The Centre and State governments should not be
permitted to reduce or waive off loans, the System of
waiving of loans should be stopped as it adversely affects
credit culture and this act is making farmer trapped in the
debt cycle, due to the absence of market competitive
farmer friendly agriculture policy.
3. That the Banks should not be allowed to TECHNICALLY
WRITE OFF NPA‘s and also the Provision to banks on
NPA‘s should not be allowed which reduces their tax
liability as Banks are Profit oriented corporate entities, The

writing off of NPA‘s should be stayed till decision of this
petition,as writing off of NPA‘s is like tampering of Balance
sheet which hides that the true and exact financial
conditions of the banks.
4. The Petitioner have stated the relevant facts elaborately in
the Writ Petition. For the sake of brevity, the same are not
repeated in the present application. The Petitioners
however crave leave to refer to and rely on the same at
the time of the hearing of the present application as if the
same formed part of the present application.
5. No injury will be caused to the Respondents if the stay on
the impugned order is allowed, rather the manipulation of
Bank funds will be stopped, as due to end of financial year
books of accounts of banks are being finalized. Also
without offer of any loan waiver and monetary schemes
the people will fairly cast their vote in this immediate
election process .
6. The balance of convenience is entirely in favour of the
Petitioners.
7. The Petitioners have a prima facie case and the purpose of
filing the present petition will be frustrated if the offer of
loan waiving and offer of monetary schemes in election
manifesto‘s and writing off of NPS‘s and allowable
provision to Banks are not stayed during the pendency of
the present case;
PRAYER
It is, therefore, most respectfully prayed that pending final
orders this Hon‘ble Court may graciously be pleased to:
(i) Stay the operation/mechanism of offer of loan waiving or
offer of any kind of monetary schemes in election manifestos by
political parties.
(ii) To stay the technical writing off NPA‘s by Banks and
staying the allowable provision on NPA‘s to banks which reduces
their tax liability.
(iii) Pass any other or further orders, as this Hon‘ble Court
may deem fit and proper in the circumstances of the case.
AND FOR THIS ACT OF KINDNESS THE PETITIONER AS IN

DUTY BOUND SHALL EVER PRAY.
DRAFTED BY FILED BY
REENA .N.SINGH
Advocate
PREETI SINGH
Advocate for the Petitioner
Drafted on: 03.04.2019
Filed on: 04.04.2019

APPENDIX
Article 32 in The Constitution Of India 1949
32. Remedies for enforcement of rights conferred by this Part
(1) The right to move the Supreme Court by appropriate
proceedings for the enforcement of the rights conferred by this
Part is guaranteed
(2) The Supreme Court shall have power to issue directions or
orders or writs, including writs in the nature of habeas corpus,
mandamus, prohibition, quo warranto and certiorari, whichever
may be appropriate, for the enforcement of any of the rights
conferred by this Part
(3) Without prejudice to the powers conferred on the Supreme
Court by clause ( 1 ) and ( 2 ), Parliament may by law empower
any other court to exercise within the local limits of its
jurisdiction all or any of the powers exercisable by the Supreme
Court under clause ( 2 )
(4) The right guaranteed by this article shall not be suspended
except as otherwise provided for by this Constitution

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IN THE SUPREME COURT OF INDIA

ADVOCATE FOR THE PETITIONER: PREETI SINGH

3. Defect List A-5

4. Note Sheet NSI to…

5. List of Dates B-G

6. Civil Writ Petition with affidavit in 1-36

1990 India‘s first agricultural Loan

10. ANNEXURE P-3

11. ANNEXURE P-4

13. ANNEXURE P-6

22. ANNEXURE P-15

22. ANNEXURE P-16

The present Writ Petition under Article 32 of the Constitution of

India, is being filed in Public Interest by the petitioner seeking

the intervention of this Hon‘ble Court for issuing appropriate

writ/order/direction(s) to the Respondents to act upon the

suggestions made by the Petitioner so as to refrain the

respondents from doing Technical write off of NPA‘s and also to

refrain the respondents to waive off Bank loans and to ensure

transparency and fairness regarding usage of public funds which

belongs to country‘s economy.As this practice of loan waiving

adversely affects the economy by increasing the fiscal deficit due

to Technical writing off of Non PerformingAssets(NPA‘s) by Banks

and also due to waiving off of loans by Banks on the instructions

of state and central governments.The political parties are

offering Loan waiver schemes in their election manifesto for their

political motives by ignoring the negative effects of loan waivers

on the Economy, as they are using the offer of manipulation of

public fund as a tool to achieve their political motives to come to

power.The political parties are offering to waive the loan from

the government exchequer gathered by taxation and not from

their political party funds.The objective of this petition is to stop

the misuse and manipulation of public money in the hands of

political parties and to stop technical write off of NPA‘s by Banks

as the Banks are profit oriented corporate entities incorporated

under law.Presently the majority of banks in our country are

facing losses,more than 6000 Bank employees were found

responsible for Banks NPA‘s.The technical write off of Non

Performing assets is like tampering and fabrication of Balance

condition, the Banks also get a percentage of around 7.5% to

8.5%of NPA as an allowable provision from their income which

are helping banks in reducing their taxes.The political parties

attract mass voters or vote banks at the cost of public funds

which belong to country‘s economy. The Fiscal deficit of majority

of states clearly mentions the negative monetary conditions of

the state governments. The political parties are ignoring the

financial and economic condition of the country and irrespective

of this fact, the political parties are leaving no stone un-turned

by offering various loan waiver and monetary schemes in their

party manifesto‘s in order to grab power by luring particular

section of vote bank and the masses, specially farmers. These

political parties by offering temporary incentives like loan

waiving is spoiling the economy‘s the credit culture and are

permanently making the farmer financially weaker and

vulnerable. Presently there is hardly any resultant farmer

friendly policy by the government which can truly help to

improve the financial condition of farmer. The government can

remove providing Minimum Support Price (MSP) of few crops and

can introduce ―One District One Agriculture product‖ production

system with this system different market demand based

products will be produced and the same to be purchased directly