Why does it happen? Why do we have this state of affairs? The most obvious reason is that the system protects the large borrower and his divine right to stay in control. This is not for want of laws.
The Debts Recovery Tribunals (DRTs) were set up under the Recovery of Debts Due to Banks and Financial Institutions (RDDBFI) Act, 1993 to help banks and financial institutions recover their dues speedily without being subject to the lengthy procedures of usual civil courts.