Title : e-DRT system in Debt Recovery Tribunals & Debt Recovery Appellate Tribunals

Description

e-DRT Implementation

Client Name : Ministry of Finance, Government of India

Client Type : Central Government

Start Date : 1st January, 1997

End Date : 1st January, 1998

Project Description

With effect from 28.6.2007, the erstwhile Banking and Insurance Divisions of the Department of Economic Affairs, Ministry of Finance has become a separate Department namely the Department of Financial Services (DFS). The Department is headed by a Secretary assisted by Additional Secretary, five Joint Secretaries, one Economic Advisor and eleven Directors/ Deputy Secretaries.

The Banking Division of DFS looks after issues relating to Public Sector Banks and administers policies having a bearing on the working of banks and term lending Financial Institutions such as NABARD, SIDBI, NHB, IIFCL, EXIM Bank, IFCI, IDFC, IIBI etc. The functions of the Insurance Division include formulation of policies for the orderly growth of the insurance sector. The Department of Financial Services also deals with policy matters relating to pensions.

The Debt Recovery Tribunals (DRTs) have been set up under the provisions of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (51 of 1993) for expeditious adjudication and recovery of debts due to bank and financial institutions. At present there are 33 Debts Recovery Tribunals (DRTs) and 5 Debts Recovery Appellate Tribunals (DRATs). Each DRT is headed by a Presiding Officer (PO) who is equivalent to a District Judge and each DRAT has one Chairperson equivalent to a High Court Judge.

The location of the DRAT is one each in Delhi, Mumbai, Chennai, Kolkata and Allahabad. The DRTs are located in various parts of the country including 3 DRTs each in Delhi, Mumbai, Chennai and Kolkata; 2 DRTs each in Ahmedabad and Chandigarh and one each in Ahmedabad , Aurangabad, Bangalore, Coimbatore, Cuttack, Ernakulum, Guwahati, Hyderabad, Jabalpur, Jaipur, Lucknow, Madurai, Nagpur, Patna, Pune, Ranchi and Vishakhapatnam.

The role of the DRTs has been further enhanced by the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, which provides for aggrieved parties to make appeals before the DRTs.

The Banks and FIs file applications for the recovery of their dues to the respective Debt Recovery Tribunals (DRTs). The borrowers also file appeals against the action of the Banks under SARFAESI Act. The Presiding Officer has the jurisdiction, power and authority to entertain and decide on the applications filed by the banks and financial institutions. Anybody aggrieved by the orders of the DRT can file appeals before the DRAT.

  • The DFS, as part of its initiative to strengthen the DRTs across the country, is keen to introduce e-Governance in all the DRTs.
  • DFS recognizes that use of Information and Communication Technology (ICT) has the potential to improve the overall performance and efficiency of the DRTs, help facilitate effective trial of cases and management of case related issues dealt by DRTs. DFS has also recognized that only an ICT enabled DRTs along with the other planned structural reforms can meet the challenges faced in the context of speedy recovery of debts.

DFS intends to implement e-DRT project, that will effectively utilize information technology and will enhance effectiveness of DRTs & to achieve the speedy disposal and recovery through the use of reliable, accurate and timely information to the concerned stakeholders.

Project Objectives

The objectives of e-DRT project are to significantly benefit from the ICT interventions. The objectives envisaged for the e-DRT engagement are as follows:

  • To empower DRT officials by providing technology enablers to help them deliver top class services
  • To facilitate applicants and defendants to get hassle free access to the information
  • To have access to timely and accurate MIS Reports
  • To efficiently manage case records
  • Enable banks and financial institutions to easily track their case related information
  • To Support Recovery Officers with state of the art tools and technology to speedily enforce the orders
  • To reduce workload for employees and provide hassle-free administrative services

NISG’s Methodology

The project was taken up by NISG in 2011

Current Status

Phase I Consulting Process : Complete
Implementing Agency : Identified
Award of Contract to IA : Decision awaited from Government

Phase II – Setting up of Project Monitoring Unit: When the project takes off

  • Identified DRTs with High case volumes
  • Conducted a Stakeholder workshop having focused interactions with CPs, POs, ROs, Registrars, Section Officers, Bankers, Eminent DRT Advocates and Defendants; sensitize them about the project and understand issues and improvement areas in the current system
  • Conducted detailed study at DRTs and DRATs - Delhi, Chennai and Kolkata (12 offices) study and identify variations in practice of rules and regulations, good practices being followed
  • Conducted study and assessment of current Infrastructure & Legal framework
  • Change Management Readiness survey conducted, was useful in elucidating the perception towards change, current needs and issues and areas which require change
  • Process Study for formulation of As-Is and To-Be covering following process:
    • Application filing and processing methods (scrutiny, endorsement, written statements, counter claims)
    • Finance, HR & support functions (Budget Proposal, Expenditure tracking, Service book, payroll, leave, record room etc.)
    • Proceedings and Judgment Orders (summons, cause list, hearing, cross examination)
    • Recovery & Auction process (debt recovery certificate, cost memo, demand notice, attachment, auction, sale proclamation, arrest & warrants etc.)
  • Discussions with SIs before EoI and RFP stage for Industry feedback
  • Key decisions regarding proposed solution design
    • Re-use of existing infrastructure (computers)
    • No need to setup own Data Center for DRTs, instead collocation at a govt. owned premises
    • On-line filing of Appeals, auto-notifications, case management, total automation of recovery process, workflow based approval for auction creation and configuration

Published On : 11th July, 2013