Can the Bankruptcy law deliver?

The Bankruptcy law is good but the fear is it is one more law in the list without any hope of bringing in any tangible benefits to the banks or the economy. Most of the bad debts are  the creations by the interested parties and they all know as to how to hoodwink this law also as they have been doing with all the existing laws of the country  with the connivance of all concerned authorities  and they all know as to how to escape the enforcement of the law if it happens..As it is, the country does not suffer for want of laws and if all the existing  laws can be enforced without fear or favour, most of the problems faced by the economy would vanish automatically. The fear of law is simply absent and the enforcement of law can be easily manipulated as the system permits it. For the banks' bad debts, the better law would be to ensure that the banks and borrowers follow some professional approach in the conduct of loan portfolio and both follow some ethics and discipline in the use of public deposits. Doing business without any ethics can only ruin the country and some  unscrupulous fellows would accumulate the wealth at the cost of public. Any law would not be of any use as long as ethics and values get ignored in the conduct of business involving public money and enforcement of laws is not effective

Dr T V Gopalakrishnan

( This comment appeared in Business Standard dt 8/2/16) .