News
Tuesday, March 15, 2011
SBP suggests formation of commission for loans’ recoveryBy Hasnaat Malik
ISLAMABAD: The State Bank of Pakistan (SBP), on Monday, suggested the Supreme Court (SC) to constitute a commission, headed by a retired judge of the apex court, to examine cases regarding written off loans.
Dr Pervez Hassan, counsel for the Allied Bank of Pakistan (ABL), appearing before a two-member bench hearing written off loan cases, said that the SBP governor had suggested that a commission be formed headed by former judge of SC, Justice Saleem Akhtar, and comprising Rashid A Chughtai, former SBP DG and Chartered Accountant Yousaf Adil. The court directed the banks to get the terms of reference published in the print media, both Urdu and English, along with details about the commission within three days. If borrowers or the customers have any objection regarding the commission or its terms of reference, they could appear before the court in the next hearing.
Dr Hassan proposed that the commission be given powers and functions under the Pakistan Commission of Inquiries Act, 1956. He also said that the commission be given permission to examine and determine a list of cases where write-offs were granted for political reasons or considerations other than bona fide business purposes.
“The commission should also have the authority of examining people on oath, receiving evidence on affidavits, and issuing commissions for examination of witnesses or documents,” he said. The court has now adjourned the case till April 11.
Courtesy www.dailytimes.com.pk