RBI identifies 12 mega bank defaulters usurping over Rs.2 tn of Tax Payers money; to act under Insolvency & Bankruptcy Code

Mumbai : ‘RBI’ has prepared a list of 500 highest ‘defaulters’, to resolve the issue of ‘Non-Performing Asset’ (NPA). It has been observed that as per this list, 12 ‘defaulters’ owe banks around Rs 2 lakh crore and action will be taken against them as per ‘Insolvency and Bankruptcy Code’. Two days back, the Union Finance Minister and the bank officials had a meeting relating to the issue of ‘NPA’. Preparing the list only a few hours after this meeting indicates that the government is gearing  up to take action against the defaulters.

The issue of ‘NPA’ has become  the most serious  issue for the Indian banks. The bad loans of the  public sector banks have reached nearly Rs 7 lakh crore. Huge proportions of this are the corporate loans. Due to this issue of bad loans, many banks are on the  verge of a financial collapse. Finance department has  given instructions to  the banks to take steps to reduce  the ‘NPA’.

Last year the act of ‘Insolvency and Bankruptcy’ was passed in the Lok Sabha. As per this act, the company which has been unable to repay the loan would  be considered defaulter and declared  bankrupt. After this the National Company Law Tribunal (NCLT) would complete the hearings on these cases within 180 days and decide how to recover the money from these defaulters. Accordingly, the banks could sell off the properties of the defaulters and find a way out from the issue of ‘NPA’.

The Internal Advisory Committee (IAC) of RBI has prepared a list of 500 loan defaulters. Amongst these, 12 accounts have a loan overdue of around 2 Trillion Rupees or Rs 2 lakh crore. In other words, these 12 accounts have the 25 percent of the ‘ NPA ‘ of these banks. Although the RBI has not revealed the names of these 12 defaulters, yet action will be taken against them under the  ‘Insolvency and Bankruptcy Code’.

After this, action would  be taken on other accounts from this list. It is said that the proceedings on other big loan defaulters would be initiated within six months. Almost all the debtors in this list have caused a loss to the bank in excess of Rs 5,000 crore. Officials have informed that RBI will very soon instruct the banks lending loans to these ‘defaulters’, to start proceedings against them under the ‘Insolvency and Bankruptcy Code’

Keep dreaming of recovery, says ‘Willful Defaulter’ Vijay Mallya

London : Vijay Mallya, a ‘Willful Defaulter’ who has absconded to London without repaying the loan to the tune of around Rs 9,000 crore has instead been mocking Indians that they should only dream of getting recoveries of crores of rupees. Vijay Mallya taunted thus while he was granted bail until the 4th of December in a hearing at a London court.

Vijay Mallya had reacted saying that all allegations against him were  false and those who have alleged against him should only dream of  recovering billions of pounds. He said that he had  strong evidence to prove that all the charges against him are false. There are attempts to trap him, but since the charges against him are baseless he would not be cornered.

India has initiated the process of extradition of Vijay Mallya from London. However, everything is dependent on the decision given by the London Court. Mallya looked hopeful after the  London Court had granted him the  bail until the 4th of December.