Supreme Court orders RBI Give list of defaulters of over Rs. 500 cr. Loan

Supreme Court orders RBI Give list of defaulters of over Rs. 500 cr. Loan

PIL was filed in the Supreme Court of India.

The court made RBI party to a PIL filed in 2005 by an NGO Centre for Public Interest Litigation (CPIL)

Issue –
CPIL has raised the issue of loans advanced to some companies by state-owned Housing and Urban Development Corporation (HUDCO).
Advocate Prashant Bhushan, appearing for CPIL, submitted that about Rs 40,000 crore of corporate debt was written off in 2015.

The Supreme Court on Tuesday ordered the Reserve Bank of India (RBI) to provide a list of companies which are defaulters of bank loans of over Rs 500 crore while expressing serious concern over the rise in bad loans.

Supreme Court Bench asked for the list of loan defaulters to be placed before it in a sealed cover.
SC bench wanted to know how the state-owned banks and financial institutions were advancing large-scale loans without proper guidelines and whether there was adequate mechanism to recover them.

During the hearing SC bench asked, “You have a list of major defaulters who run empires and yet default,”

Supreme Court needs to make the list public and using which methods big loan defaulters get their loans restructured

Do they get accumulated interest waved?


Reality views by sm –

Tuesday, February 16, 2016

Tags – RBI Default Loan