Union Finance Minister Nirmala Sitharaman on Monday announced that four special Lok Adalats will be conducted in 2026 to expedite the disposal of pending cases before the Debt Recovery Tribunals (DRTs) and Debt Recovery Appellate Tribunals (DRATs). A significant number of these cases involve high-value claims exceeding ₹100 crore and have remained unresolved for an extended period, prompting the government to take steps to accelerate the judicial process.

Responding in the Lok Sabha, Sitharaman stated that nearly 71% of the total suit amounts in pending DRT and DRAT cases are linked to high-value disputes. She explained that the government has adopted a two-pronged strategy to address the issue, which includes designating specific DRTs to exclusively handle high-value cases, thereby ensuring faster and more efficient resolution. In addition, financial institutions and banks are being encouraged to make greater use of Alternate Dispute Resolution (ADR) mechanisms, particularly Lok Adalats, to settle cases outside the conventional court system.

The initiative builds on the success of two special Lok Adalats organized in 2025 in collaboration with the National Legal Services Authority of India (NALSA), which contributed significantly to reducing the backlog of cases. Encouraged by these results, the government has planned four more such Lok Adalats in 2026 to further streamline the resolution process and address the growing number of pending cases.

Sitharaman emphasized that these measures are part of a broader effort to strengthen the debt recovery framework and ensure timely justice for all stakeholders. By prioritizing high-value disputes and promoting alternative resolution mechanisms, the government aims to reduce the burden on tribunals while improving efficiency in the legal system. The move is expected to benefit both financial institutions and individuals by enabling faster resolution of cases and enhancing the overall effectiveness of the debt recovery process.