Lok Adalats to Clear Debt Recovery Cases: FM

New Delhi, Mar 16 (PTI) Finance Minister Nirmala Sitharaman on Monday said four Special Lok Adalats have been planned for the year 2026 to dispose of pending cases before the DRTs and Debt Recovery Appellate Tribunal (DRAT).

Replying to a question in the Lok Sabha, she said among the pending cases before the debt recovery tribunals (DRTs) and DRATs, most are high-value cases, primarily those involving amounts of Rs 100 crore and above.

"If we look at the total amount involved in the pending cases before DRTs, nearly 71 per cent of the suit amount relates to these high-value cases," she said, adding the government has adopted a two-pronged strategy to address the pendency.

First, specific DRTs have been designated to hear only high-value cases, that is, cases involving Rs 100 crore and above.


Second, banks and financial institutions are being encouraged to dispose of cases through Alternate Dispute Resolution (ADR) mechanisms, such as Lok Adalats and similar platforms.

As part of the steps taken to expedite the disposal of cases, the government, in consultation with NALSA (National Legal Services Authority of India), has been organising Special Lok Adalats specifically for DRT-related cases, she said.

"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," Sitharaman said.

The minister said through these measures, the government is making sure that case disposal happens faster.

"We are also continuously reviewing the situation to determine how best we can intervene meaningfully. Overall, steps are being taken to ensure that the pendency of cases is reduced," Sitharaman said.