Prime Minister Narendra Modi-led central government on April 17 handed over a list of loan defaulters to the Supreme Court that includes names of all corporate entities that owe more than Rs 500 crore each to banks. The list was submitted to the apex court in full confidentiality by the central government who also refrained from making names of top defaulters public. The government also admitted that the total amount of default in repaying loans is Rs 5 lakh in over 70000 cases. The names of the defaulters have not been made public in ‘economic interest’ of the country on the advice by the Reserve Bank of India.
Replying to an order by the apex court in January, the Union Finance Ministry submitted an affidavit citing the list of corporate entities as an evidence ‘in a sealed cover for the perusal of the court,’ according to an Indian Express report.
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Reportedly, 2,277 cases are pending for over 10 years in DRTs.
- The Arun Jaitley-led Finance Ministry has disclosed that around 2,277 cases of loan defaults in the debt recovery tribunals across the country are pending for more than 10 years
- The affidavit submitted by the ministry also revealed that on an average each of the 34 debt recovery tribunals had 67 cases that are awaiting decision on loan recovery for at least 10 years
The city with the highest number of pending cases in over 10 years is Kolkata, where three tribunals alone have 558 cases, which totals up in being 1/4 of the total cases that are pending across the country. Mumbai ranks second as far as pending cases are considered. Debt Recovery Tribunals in Mumbai have 356 pending cases, while Hyderabad has 297 cases. These three cities alone make up for half of the total pending cases in India for at least 10 years.