1. RBI gives loan defaulters’ list, urges SC not to reveal names

RBI gives loan defaulters’ list, urges SC not to reveal names

The RBI has submitted a list of big loan defaulters in a sealed cover to the Supreme Court with a submission that disclosing their names may have "adverse impact" for business and may "accentuate failure of business".

By: | New Delhi | Published: March 30, 2016 6:43 PM
rbi, loan defaulters The RBI has submitted a list of big loan defaulters in a sealed cover to the Supreme Court with a submission that disclosing their names may have “adverse impact” for business and may “accentuate failure of business”. (Reuters)

The RBI has submitted a list of big loan defaulters in a sealed cover to the Supreme Court with a submission that disclosing their names may have “adverse impact” for business and may “accentuate failure of business”.

“Disclosing details of accounts where defaults have been found irrespective of the reasons for no-repayment may have adverse impact for business and in a way may accentuate the failure of business rather than nursing it back to health,” the Reserve Bank of India said in a recent affidavit submitted along with the list of defaulters.

“Disclosure of names of defaulters may have an impact on the livelihood of scores of employees employed in such entities,” the RBI said.

A bench headed by Chief Justice T S Thakur had last month directed the central bank to provide a list of companies which are defaulters of bank loans of over Rs 500 crore while expressing serious concern over rise in bad loans.

The apex court had also asked RBI to provide within six weeks the list of companies whose loans have been restructured under corporate debt restructuring schemes.

It had on February 16 asked how state-owned banks and financial institutions were advancing large-scale loans without proper guidelines and whether there was adequate mechanism to recover them.

The court had made RBI party to a PIL filed in 2005 by an NGO Centre for Public Interest Litigation (CPIL) in which it had raised the issue of loans advanced to some companies by state-owned Housing and Urban Development Corporation (HUDCO).

Advocate Prashant Bhushan, appearing for CPIL, had submitted that about Rs 40,000 crore of corporate debt was written off in 2015.

Giving reasons for default, the RBI affidavit said this happened due to various reasons like delayed permissions from government and regulatory agencies, delayed acquisition of land, delayed sanction of loans which made the borrower unable to use it in time, poor credit appraisal, poor monitoring, lack of business management knowledge, unanticipated business cycle downturn, commodity cycle downturn and poor project execution.

  1. A
    Amit Goel
    Mar 30, 2016 at 5:11 pm
    It is not understood why for big corporates the names are to be kept in secrecy. For common people the photographs with names and address are published in leading dailies regularly. Why these double standards?
    Reply
    1. G
      Ghoda Murshatpur
      Mar 30, 2016 at 9:33 pm
      Common man is expected to be highly genius & aloof from impact of economic conditions & market forces. What a rubbish this RBI is.
      Reply
      1. G
        Ghoda Murshatpur
        Mar 30, 2016 at 9:39 pm
        Courts must snub & warn RBI for making such an appeal. Let those fit to survive, survive !
        Reply
        1. G
          Ghoda Murshatpur
          Mar 30, 2016 at 9:36 pm
          There names must be known to the w world so that these people learn to be cautious. Let investors & business enterprises analyze the reasons behind their failures in transperent manner. Most of these defaulters are themselves responsible. Glaring eg. is "King of good times" !
          Reply
          1. N
            nareshj
            Mar 30, 2016 at 3:45 pm
            All stupid reasons given by RBI. Why they want to protect defaulters ????All names must be published. NAME THEM SHAME THEM.
            Reply
            1. v
              varghese.al
              Mar 31, 2016 at 6:48 am
              supreme court must upheld the genuine concern raised from RBI . there is heavy chances to system collapse leading 100 of 1000's job loss, in case of actual financial condition if disclosed in many large cap companies / conglomerate even. subject must be addressed properly, but bankers and their consortium must be informed the total debt exposure of each fund seeker from an authorised rating agency whom have complete information of enies' financial health condition.
              Reply
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