Union Minister Shobha Karandlaje has formally written to Union Finance Minister Nirmala Sitharaman, requesting the establishment of an additional Debt Recovery Appellate Tribunal (DRAT) in Bengaluru. In her representation, the Minister highlighted the significant volume of debt recovery litigation emerging from Karnataka and the broader southern region, emphasizing that the current judicial infrastructure is insufficient to handle the increasing caseload effectively.
Currently, the jurisdiction for debt recovery appeals from Karnataka falls under the DRAT in Chennai, which also handles matters from Tamil Nadu, Kerala, and Andhra Pradesh. The Minister pointed out that the heavy reliance on a single appellate body leads to prolonged delays in the resolution of high-stakes financial disputes. By establishing a dedicated DRAT in Bengaluru—a major financial and technological hub—the government could significantly reduce the "pendency" of cases and accelerate the recovery of public money for banking institutions.
The letter underscores that Bengaluru’s status as a center for commerce and industry makes it a logical location for enhanced legal infrastructure in the banking sector. Minister Karandlaje argued that providing a local appellate forum would not only benefit financial institutions but also provide relief to litigants who currently face the logistical burden of traveling to Chennai for every hearing. This move is framed as an essential step toward improving the "ease of doing business" within the state.
The request also touches upon the administrative pressure faced by the existing Debt Recovery Tribunals (DRTs) in Bengaluru. Without a proximal appellate authority, the decisions of these lower tribunals are often caught in a bottleneck, preventing the finality of orders. The Minister suggested that a new DRAT would streamline the entire recovery process, ensuring that the legal framework keeps pace with the state's rapid economic growth.
Legal practitioners in Karnataka have long advocated for this expansion, noting that the distance and workload at the Chennai DRAT often result in urgent stay applications and appeals remaining unheard for extended periods. The Minister's intervention reflects a broader push to decentralize specialized judicial bodies and bring them closer to the major centers of litigation.
The Finance Ministry is expected to review the proposal in consultation with the Department of Financial Services. If approved, the establishment of a DRAT in Bengaluru would represent a major upgrade to the region's debt recovery ecosystem, potentially serving as a model for other high-growth states facing similar judicial backlogs in financial matters.
The proposal aligns with the central government's ongoing efforts to strengthen the Insolvency and Bankruptcy Code (IBC) and other recovery mechanisms. By narrowing the gap between the original filing and the final appeal, the proposed tribunal could play a vital role in maintaining the health of the banking sector and the overall credit culture in the region.