Supreme Court asks RBI to submit a list of big corporate firms that have defaulted on loans
The bench expressed displeasure that owners of such companies have failed to pay thousands of crores of rupees and yet are 'enjoying their lives personally'.
The Supreme Court on Tuesday slammed on owners of big corporate companies who have defaulted on major bank loans and asked the Reserve Bank of India to submit the names of the offenders who owe more than Rs 500 crore, dna reported. The country’s public banks have been staggering under crores of unpaid loans, with state-owned banks signing off 1.14 lakh crore of bad debt over the last three years.
The bench comprising Chief Justice TS Thakur and Justices R Bhanumathi and UU Lalit expressed their displeasure that "big corporate house owners have defaulted repaying thousands of crores of rupees taken as loan, yet [are] enjoying their lives personally,” Times of India reported.
The court was hearing a public interest litigation filed by advocate Prashant Bhushan against Housing and Urban Development Corporation highlighting a misappropriation of funds. When the state revealed that information about these loan defaulters was classified, the court asked the RBI to come up with a list of names and submit them in a sealed envelope within eight weeks.
The bench said that there were irregularities in the sanctioning of the loans and that the banks should have ensured in their contractual clauses that they would definitely be recovered. They commented that the “hardworking savers and taxpayers” of the country end up paying for these debts.