New Delhi, June 19 -- The Supreme Court on Friday expressed concern over what it described as a deep-rooted nexus between corporate borrowers, Asset Reconstruction Companies (ARCs), and public sector banks in the settlement of defaulted loans, resulting in substantial losses to public money deposited in banks by taxpayers.
Questioning the manner in which public money is lent and subsequently termed as stressed and written off through settlements routed via ARCs, a Bench comprising Chief Justice Surya Kant and Justice V Mohana observed that banks cannot lend public money and then make little effort to recover it before agreeing to steeply discounted settlements.
In a strong indictment of such practices, Chief Justice Kant remarked that pub...