Cabinet approved establishment of six new Debt Recovery Tribunals (DRTs) at Chandigarh, Bengaluru, Ernakulam, Dehradun, Siliguri and Hyderabad (4 DRTs at Bangaluru, Chandigarh, Ernakulam & Hyderabad are additional DRTs).
A study conducted through Indian Banks Association (IBA) in consultation with all stake holders, recommended rationalization of jurisdiction of some DRTs and setting up of six more DRTs. The number of cases pending with DRTs is over 50,000 and cases are increasing.
The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) was enacted to provide for the establishment of Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs) for expeditious adjudication and recovery of debts due to banks and financial institutions. After the enactment of the SARFAESI Act 2002, DRTs have the Appellate jurisdiction under the said Act. The Finance Minister, in his Budget Speech on 10.7.2014 announced that six new DRTs would be set up.