Bombay Rayon keeps books off Central Bank, runs wilful default risk

Sep 13 2013, 08:12 IST
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Central Bank has recently sent a notice to Bombay Rayon Fashions, which owes a consortium of banks Rs 4,055 crore, asking it to furnish details of how the company was using the money lent to it. Central Bank has recently sent a notice to Bombay Rayon Fashions, which owes a consortium of banks Rs 4,055 crore, asking it to furnish details of how the company was using the money lent to it.
SummaryBanks are getting tough on corporates who they believe are intentionally delaying loan repayments.

declared a wilful defaulter, it loses access to finance from other banks and financial institutions. Further, promoters of such companies cannot be given fresh funds for five years to start a new venture. Lenders can also initiate criminal proceedings, if necessary, against the guarantors and companies or seek a change in management.

Recent Wilful Defaulters

Bombay Rayon: 4,500*

Deccan Chronicle Holdings: 4,000

Entegra: 150*

* In the process of being named wilful defaulters

(In Rs crore)

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