Loan defaulters' poll participation

In this regard we are heartened by the latest BB circular issued on Tuesday, asking all commercial banks to take strong measures to prevent loan defaulters from contesting in the coming polls. The BB observed that loan defaulters hire high-priced lawyers and get stay order from higher courts using legal loopholes that allow people otherwise ineligible to contest polls. Two things happen here. First, bank loans end up financing elections campaigns, and second, loan takers pay no heed to the need for repayment since they can count on getting stay order to save them.

It has been a frustrating experience seeing large loan defaulters paying no heed to financial discipline and/or to the need of stopping their profligate spending habits ending up being our public representatives. As the BB circular makes it amply clear, this step has been ordered to prevent a number of identified loan defaulters who, before every election, are known to get stay order from High Court to strike out their names from CIB list. We fully agree with the BB suggestion that commercial banks should hire competent lawyers to appeal for the vacation of stay orders.

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For years now we have been reporting against the issue of loan defaulters. We have always differentiated between two categories of defaulters -- the genuine and the willful. We are in favour of extending all sorts of help to those businessmen, who, for circumstances beyond their control, and who with good track record of repayment, suddenly default in loan repayment because of genuine reasons. It is the latter category that has harmed our financial sector and distorted the economy. In all probability, it is this group which wants to further their clout by getting elected as MPs to increase their ill-gotten wealth.

We must take all measures to stop this group from standing in elections. We welcome the BB initiative and urge the Election Commission to also take a firm decision on this matter. Finally our appeal is to our higher judiciary to be absolutely certain that defaulter are not taking advantage of legal loopholes.