October 24, 2016

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Not Vijay Mallya alone, 57 defaulters indebted banks a whopping Rs 85,000 cr

A whopping Rs 85,000 crore is outstanding on bank loans from just 57 defaulted borrowers.


Reserve Bank of India (RBI) has submitted a report to Supreme Court regarding the borrowers who have taken loans of worth Rs 500 crore and are still defaulted. The SC has further asked the RBI on the reasons of not disclosure of their names.

"Who are these people who have borrowed money and are not paying back? Why this fact that the person has borrowed money and not paying back is not known to public," asked a bench headed by Chief Justice T S Thakur.

The bench said if the bar was less than Rs 500 crore then the default amount would have crossed on Rs 1 lakh crore.

The bench also asked the RBI that in case if someone files an RTI query then it’s his right to know who the defaulters are. So it becomes impediment to reveal the names of the defaulters.  

"People should know how much money a person has borrowed and how much money he needs to pay back. The amount payable should be known to public. Why should you withhold the information," the bench said.

To this the RBI said defended the recommendation and said all the defaulters are not wayward. The central bank further adds to it and said it is in the interest of the bank to not disclose the names of defaulters publicly.

The bench said, "You (RBI) must work in the interest of the country, not just in the interest of banks."

The bench will next hear on the matter of disclosing the names of the defaulter son 28th October 2016.

Apex court has previously expressed its discontentment on the increasing amount of loans and growing defaulters and commented on as well "people are taking thousands of crores and running away by declaring their companies insolvent, but poor farmers who take small amounts of Rs 20,000 or Rs 15,000 suffer."

Image Courtesy: Daily Nation

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