Raising concerns over rising Non Performing Assets (NPA) in public sector banks, activist lawyer Prashant Bhushan has written to RBI Governor Raghuram Rajan saying steps taken to address the problem are "inadequate".
He alleged that "public money is being disbursed as loan to bribe giver, promoters with dubious records for non-viable projects. Banks too are soft on recovering loans from corporates".
"The steps being taken by RBI to tackle NPAs/Stressed Assets of public sector banks are inadequate and do not strike at the root of the problem," he said.
Bhushan, who is a founder-member of Swaraj Abhiyan founded after his expulsion from AAP, also demanded setting up of an Special Investigating Team to investigate all the NPAs and create a specialised agency to clear all loans beyond Rs 100 crore.
He has also demanded that a law be passed under which wilful defaulters could be brought to book and loan be recovered from them.
Bhushan claimed that of the total loan given by the country's public sector banks till March 31, 2015, Rs 7,70,000 crore were "stressed assets", whose repayment is in serious doubt.
