This refers to the report "Stringent guidelines for wilful defaulters on the cards"(June 28). The manner in which huge sums of money borrowed from banks have been swindled by unscrupulous promoters over the years calls for urgent action by the government. The modus operandi of these delinquent borrowers is to strip the business ventures off their assets and siphon the money before defaulting on loan repayments. Subsequently, the money taken out is either stashed in foreign banks or invested in real estate transactions.
Apart from the fallouts of this scam of enormous proportions being perpetrated on the Indian economy, the issue has a moral aspect as well. Why should the taxpayer's hard-earned money be squandered away repeatedly? And why should an honest entrepreneur repaying his loan, be at a disadvantage, compared to the dishonest ones?
The current laws need to be made more stringent. A thorough investigation to establish the chain of money thus laundered and criminal proceedings to back it up would go a long way in strengthening our banking system.
Naveen Sood Indore
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