1913 wilful defaulters together owe Rs 1.46 LAKH CRORE to banks as on Jun 2020: RBI

Agencies
December 17, 2020

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Hyderabad, Dec 17: The Reserve Bank of India (RBI) has said there are 1,913 wilful defaulters, who together owed Rs 1.46 lakh crore to banks as on June 2020.

Pune-based RTI activist Vivek Velankar had filed the RTI application with RBI to get information on wilful defaulters.

He said, "The information shared by RBI reveals that there are 264 wilful defaulters who defaulted on a loan of Rs 100 crore and above owe Rs 1,08,527 crore to banks.

Sharing with UNI, the RBI information to Mr Velankar, All India Bank Employees' Association (AIBEA) General Secretary Ch Venkatachalam on Thursday said, 'While the common borrowers are struggling with repaying equated monthly instalments (EMIs) of their loans and also face harassment for missing a single EMI, big and wilful defaulters seem to not only go scot-free but also 'live life king-size' without any worry or fear of any action due to the the banks, especially the public sector banks (PSBs), turning a blind eye on these lapses.'

He said there are 23 defaulters with an outstanding of over Rs 1,000 crore and their dues accrue to Rs 43,324 crore.

Wilful defaulters who owe between Rs 500 crore to Rs 1,000 crore to banks are 34 and their outstanding is Rs 22,105 crore.

There are 207 wilful defaulters in the Rs 100 crore to Rs 500 crore default range and together they owe Rs 43,095 crore to Public Sector Banks.

RBI told Mr Velankar that the concerned banks have filed cases to recover their dues from these wilful defaulters. While RBI shared this information under the RTI, Mr Velankar felt since banks are submitting these lists of wilful defaulters under a regulatory mandate, the central bank should suo motu publish this information on its website to create awareness among citizens and bank customers.

Topping the wilful defaulters' list is Mehul Choksi's scam-hit company Gitanjali Gems Limited, which owed Rs 5,747.05 crore, besides other group companies, Gili India Limited and Nakshatra Brands Limited, which had taken loans of Rs 1,446 crore and Rs 1,109.16 crore, respectively.

The second on the list is REI Agro Limited, with an amount of Rs. 3,516 crore, and its Directors Sandip Jhujhunwala and Sanjay Jhunjhunwala are already under the scanner of the Enforcement Directorate (ED) for the past more than a year.

The next on the list is Frost International Limited with an outstanding of Rs 3,097.64 crore.

It is followed by the absconding diamantaire Jatin Mehta's Winsome Diamonds & Jewellery owing Rs 2,975.73 crore and which is being probed by the Central Bureau of Investigation (CBI) for various bank frauds.

Kanpur-based writing instruments giant, Rotomac Global Private Limited, part of the famed Kothari group, is next on the list with an outstanding of Rs 2,530.95 crore.

The others among the top-10 wilful defaulters include, Kudos Chemie, Punjab (Rs 1,948.12 crore), ABG Shipyard Limited (Rs 1,874.90 crore), Transstroy (India) Limited (Rs 1,861.11 crore) and Forever Precious Jewellery and Diamonds Private Limited (Rs1,653.25 crore).

Another bad-boy of bank defaults, Vijay Mallya’s Kingfisher Airlines Limited is at the 15th place on the list with dues of Rs 1,335.26 crore.

Interestingly, the outstanding debts are higher compared with the information shared by the All India Bank Employees Association (AIBEA) in July this year, Mr Venkatachalam said.

As part of its nationwide campaign to celebrate the bank nationalisation day, the AIBEA had released a list of wilful defaulters of the PSBs.

The Mehul Choksi-owned Gitanjali Gems Limited, with its default of Rs. 4,644 crore to the Punjab National Bank (PNB) topped the list.

It was followed by ABG Shipyard Limited (Rs1,875 crore, owed to the State Bank of India-SBI), REI Agro Limited (Rs 1,745 crore, UCO Bank), Ruchi Soya Industries Limited (Rs1,618 crore, SBI), Gili India Limited (Rs1,447 core, PNB), Winsome Diamonds & Jewellery Limited (Rs 1,390 crore, Central Bank of India CBI), Kudos Chemie Limited (Rs1,301 crore, PNB), Nakshatra Brands Limited (Rs 1,109 crore, PNB), Coastal Projects Limited (Rs 984 crore, SBI) and Winsome Diamonds & Jewellery Limited (Rs 892 crore, PNB).

These top 10 defaulters together had an outstanding of Rs 17,005 crore to state-run lenders.

Information provided by RBI to Mr Velankar does not reveal names of the banks who had given these loans, the top union leader however said, data shared by AIBEA shows that among the 17 public sector lenders, SBI has the highest number of wilful defaulters at 685, who together had defaulted on loans of Rs 43,887 crore.

It is followed by PNB, which has 325 wilful defaulters with an outstanding of Rs 22,370 crore.

The data shared by the bank employees’ union, however, has no information about wilful defaulters in Union Bank of India (UBI) and IDBI Bank Limited.

Earlier, UBI, which had written off Rs. 26,027 crore as bad loans in past years, have stalled an RTI query from Mr Velankar on recoveries and on sharing names of big defaulters’ whose bad debt of Rs 100 crore and above were written off.

"Public sector banks as well as the union government need to show some willingness and take steps to recover these dues from wilful defaulters. In fact, if the cases against wilful defaulter are decided in a fast-track court, then just from 264 wilful defaulters, banks can recover over Rs 1.08 lakh crore," Mr Velankar, who is also the president of the Sajag Nagrik Manch, said.

Comments

chan
 - 
Friday, 18 Dec 2020

it also means that those bankers are incapable of doing proper due diligence of borrowers and choosing honest right borrowers.
Or the bankers colluded & connived with borrowers and looted the banks;

In any case, those bank officials should be booked and brought before law equally as hard core criminals on par with those dishonest defaulting borrowers .

Over all, blame the govt, RBI for their lame laws, policies & people

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News Network
November 21,2024

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After the US prosecutors charged Gautam Adani with bribery and fraud, Congress reiterated its call for a Joint Parliamentary Committee (JPC) probe into the transactions of the Adani group, and hit out at Prime Minister Narendra Modi, alleging an "internal nexus" between him and "his favourite businessman."

Senior Congress leader Jairam Ramesh said the indictment of Gautam Adani and others by the US Securities and Exchange Commission validates his party’s call for a Joint Parliamentary Committee investigation.

The Congress has been pushing for the probe since January 2023, raising concerns over alleged irregularities involving Adani and his business dealings, said Ramesh.

Ramesh referred to the party’s “Hum Adani ke Hain” series, where 100 questions were raised about the alleged scams and the links between Prime Minister Narendra Modi and Gautam Adani.
He noted that the questions remain unanswered, reiterating the need for accountability in the matter.

The US prosecutors have charged Adani with deceiving investors by concealing information about his firm's solar energy project in India, which allegedly involved bribery.

Adani has been charged with securities fraud and conspiracy, according to an indictment unsealed on Wednesday. The case focusses on an agreement between Adani Green Energy Ltd. and another organisation to supply 12 gigawatts of solar power to the Indian government.

'BETRAYAL OF INDIAN INVESTORS'

Congress leader Pawan Khera described the allegations against Gautam Adani and his conglomerate as a “betrayal of Indian investors.”

Taking to X, Khera outlined the US charges, including claims that Adani’s group bribed Indian government officials between 2020 and 2024 to secure contracts. Citing media reports, he also pointed out that Gautam Adani personally met a government official to advance the scheme.

Khera referred to a March 2024 incident where the Adani Group allegedly misled the Bombay Stock Exchange and the National Stock Exchange, calling it a “grave violation of investor trust.”

He further highlighted a March 2023 FBI raid on the premises of Sagar Adani, Gautam Adani’s nephew, where electronic devices were seized as part of the investigation.

'SEBI NOT ABLE TO PROVE ANY CHARGES AGAINST ADANI'

Shiv Sena (UBT) leader Priyanka Chaturvedi criticised central probe agencies following US charges against Gautam Adani and others in an alleged bribery case linked to solar energy contracts.

Chaturvedi raised concerns about corporate governance and regulatory oversight in the country. “They talk about corporate governance, responsibility, and accountability. The industrialists should be asked to follow the rules and regulations, but even the agencies were defending him. The SEBI has not yet been able to prove charges against him,” she said, pointing to what she viewed as failures in ensuring accountability.

'BROUGHT DISREPUTE TO INDIA'

On US charges against Gautam Adani, AAP leader Sanjay Singh called for a probe against the industrialist. He said that the probe should be conducted by an investigation agency under the Supreme Court.

"Adani Group has brought disrepute to India. This is a very serious matter. The PM of India should come forward and answer this. All the pending matters against Adani should be probed by an investigation agency under Supreme Court monitoring, and all the corruption done by him, within and outside the country, should come out before the country and action should be taken against him," he said.

BJP DFENDS

BJP IT cell chief Amit Malviya responded sharply to the Opposition’s criticism regarding allegations involving Adani Green Energy and US-based Azure Power. He pointed out that the charges in the indictment are only allegations and emphasised, “The defendants are presumed innocent unless and until proven guilty.”

Malviya argued that the crux of the case concerns agreements to supply 12 GW of power to the Solar Energy Corporation of India (SECI), contingent on SECI securing power purchase agreements with state electricity distribution companies (SDCs).

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News Network
November 12,2024

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The UN humanitarian coordinator for Lebanon has warned that the “picture of life in Lebanon remains grim,” highlighting an "alarming" level of human suffering and significant humanitarian consequences due to the ongoing Israeli carnage.

Imran Riza, the UN Deputy Special Coordinator and Resident and Humanitarian Coordinator for Lebanon (UNSCOL), provided a stark overview of the Arab country's dire circumstances in a statement released on Monday.

“The current picture of life in Lebanon remains grim. Yesterday, airstrikes reportedly killed 23 people, including seven children, in the village of Aalmat in Mount Lebanon,” Riza said on X.

An airstrike in the city of Tyre on the same day resulted in the tragic deaths of five siblings from a single family, all of whom had special needs, according to his statement.

He added that in the last week, Israeli airstrikes have killed at least 241 individuals and left 642 others injured in Lebanon, as reported by the Ministry of Health.

“In the past month, more than 185,000 people have fled their homes in their search for safety within the country, bringing the total to over 870,000 people internally displaced,” Riza said

The UN official highlighted that numerous individuals, including the elderly and those with health issues, are staying behind while witnessing the ruins of their ancestral homes.

He urged for the swift safeguarding of civilian people and infrastructure, emphasizing the necessity to uphold international humanitarian law and end the ongoing violence.

Lebanon’s National News Agency reported that Israeli forces bombed a house in the town of Maydoun in Bekaa on Monday night, killing three people and destroying the house.

Earlier, Israel bombed the northern town of Ain Yaaqoub, killing at least 14 people.

The killings came as Israeli military continued to pound Lebanon, bombing shops selling electrical appliances in the southern city of Tyre and carrying out air raids on the towns of Shamshtar in eastern Baalbek and Roumine in southern Nabatieh.

Lebanon’s Ministry of Health said Israeli attacks killed at least 54 people across the country on Monday.

Israel’s merciless attacks continue despite calls from the UN Security Council for an immediate ceasefire and directives from the International Court of Justice urging measures to prevent genocide and alleviate the dire humanitarian situation in Gaza and Lebanon.

In Lebanon, at least 3,243 people have been killed and 14,134 others wounded in Israeli attacks since the war on Gaza began on October 7, 2023.

The Lebanese resistance movement Hezbollah opened a support front for Palestinians in Gaza only a day after the Israeli regime unleashed its genocidal war on the besieged territory.

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News Network
November 14,2024

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Bengaluru: The Prime Minister Narendra Modi led union government has requested the Karnataka High Court to direct the Mandya district administration and the state government to clear a madrasa operating within the premises of the historic Jama Masjid in Srirangapatna.

The Waqf Board, opposing this move, has claimed the mosque as its property and defended the right to conduct madrasa activities there.

The matter was brought before a division bench headed by Chief Justice N V Anjaria following a public interest litigation filed by a person named Abhishek Gowda from Kabbalu village in Kanakapura taluk. The petition alleged “unauthorised madrasa activities” within the mosque.

Representing the Central government, Additional Solicitor General of India for High Court of Karnataka, K Arvind Kamath argued that the Jama Masjid was designated as a protected monument in 1951, yet unauthorised madrasa operations continue there.

He noted that concerns over potential law and order issues have so far prevented any intervention. Kamath urged the court to direct the Mandya district administration to take action and vacate the madrasa from the mosque.

In defence, lawyers for the state government and the Waqf Board contested this request, stating that the Waqf Board had been recognised as the owner of the property since 1963 and, thus, conducting madrasa activities there is lawful.

After hearing both sides, the bench adjourned the case for further arguments, scheduling the next hearing for November 20.

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