New Delhi, March 16
Finance Minister Nirmala Sitharaman on Monday said that the government plans to hold four Special Lok Adalats in 2026 to help reduce the backlog of cases pending before debt recovery tribunals and the Debt Recovery Appellate Tribunal.
Replying to a question in the Lok Sabha on Monday, Ms Sitharaman said most pending cases before Debt Recovery Tribunals (DRTs) and the Debt Recovery Appellate Tribunal (DRAT) involved large sums, mainly disputes worth Rs 100 crore or more.
She said these high-value cases account for nearly 71% of the total suit amount involved in pending matters before the tribunals.
The finance minister said the government had adopted a two-pronged strategy to tackle the growing pendency.
Under the first measure, specific DRTs have been designated to hear only high-value cases involving Rs 100 crore and above.
The second measure focuses on encouraging banks and financial institutions to resolve disputes through alternative dispute resolution mechanisms, including Lok Adalats and similar platforms.
Ms Sitharaman said the government, in consultation with the National Legal Services Authority (NALSA), had been organising Special Lok Adalats specifically for cases related to debt recovery tribunals.
“In addition to the National Lok Adalat, we have also been conducting Special Lok Adalats. In fact, two Special Lok Adalats were held in 2025 and these have proven to be very helpful. Four Special Lok Adalats are planned for the year 2026,” she told the House.
She said the measures were aimed at speeding up case disposal and reducing the pendency of cases before the tribunals.
The minister added that the government was continuing to review the situation to identify further interventions to improve the pace of disposal.
PTI
