Apropos ‘Enough checks in place to prevent excesses in resolution plans: FM’ (March 30) Resolution of bad assets under IBC are vital for restoring the health of banking sector and cutting down NPAs.
Of course, it should be ensured that the resolution decision does not include waivers and write-offs as that could lead to the problem of moral hazard and reckless borrowing.
So in this context it is hard to understand why banks have accepted haircuts of 60 per cent when they could have made a legal claim on the assets of the guarantors.
Even the Supreme Court has stated that banks can proceed against the guarantors’ assets individually for recovery of corporate dues.
Katuru Durga Prasad Rao
Hyderabad
Institutes for accountants
This refers to the article 'IIT' for accountants?"(March 30). The issues raised point to a more complex ailment which has been affecting several premier organisations in both public and private sectors. The problem relates to generalists deciding the fate of specialised organisations and government departments.
The reference is to the monopoly of civil service veterans in policy formulation and legislation. The legislatures remain helpless before the powerful secretariats manned by IAS.
As regards the proposal for IIAs, different types of skill-needs may have influenced the idea. Here in-house skill development on an ongoing basis, as is being done by CAG and RBI may be a better option.
ICAI, ICWAI and similar organisations having monopoly in their work areas also may have to change with the times.
MG Warrier
Thiruvananthapuram
Rights vs responsibilities
Apropos 'General strike ends; unions claim success' (March 30), the nation has heaved a sigh of relief as the two-day general strike of the 10 central trade unions (CTUs) ended on Tuesday.
Even the Kerala High Court order could not make the concerned employees fall in line. Significantly, the Samyukt Kisan Morcha also jumped into the fray by organising road blocks on many national highways and halting rail movement.
But what did the unions “achieve” during this two-day strike? How could they be allowed to bring various economic activities to a sudden halt, under the guise of their so called ‘Right to Strike’?
What about their onerous ‘responsibilities’ towards their fellow countrymen too? Let the honourable Supreme Court take a ‘suo-motu’ note of their such mindless acts resulting in chaos across the country.
Vinayak G
New Delhi
Mounting energy prices
The recent spurt in fuel and LPG prices is causing concern among the people. However, the bulk of the citizens have realised that international crude prices have resulted in retail price hikes. Most are adjusting well by saving fuel – switching off at traffic signals, rationalising trips, efficient cooking habits, and so on. It is only some who are trying to exploit the issue for political gains.
Indians also find the current government policies prudent, when compared with the situation in neighbouring Sri Lanka (BL Explainer March 30). It is better for us to bear the small burdens today rather than put off price hikes. Let’s hope international prices come down soon.
V Vijaykumar
Pune