New Delhi (TIP)- The finance ministry has said that the top 50 wilful defaulters, which include companies like fugitive Mehul Choksi’s Gitanjali Gems Limited, and Era Infra Engineering Limited, REI Agro Limited, and ABG Shipyard Limited, among others collectively owe a staggering amount of Rsc 87,295 crore to various banks and financial institutions. Minister of State for Finance Bhagwat Karad said in a written reply in Rajya Sabha.
“The Reserve bank of India (RBI) has apprised that the amount owed by top 50 wilful defaulters in SCBs was Rs 87,295 crore as on March 31, 2023,” he said.
Of these, the top 10 owe Rs 40,825 crore to schedule commercial banks (SCBs), he said and added that during the last five financial years, SCBs have written off an aggregate amount of Rs 10,57,326 crore as per the provisional data available with the Reserve bank of India for the financial year 2022-23.
Choksi’s Gitanjali Gems is the biggest wilful defaulter owing Rs 8,738 crore to banks. At the second position comes Era Infra Engineering Limited owing Rs 5,750 crore. The next in the line are REI Agro Limited owing Rs 5,148 crore, ABG Shipyard Limited – Rs 4,774 crore, and Concast Steel and Power Limited – Rs 3,911 crore.
A ‘wilful defaulter’ is a borrower who deliberately refuses to repay a loan despite having the means to do so.
Karad also said that the banks entering into compromise settlement in respect of borrowers categorised as fraud or wilful defaulter is not a new regulatory instruction. “”RBI had advised IBA, vide letter dated May 10, 2007, that, banks may enter into compromise settlement with wilful defaulters/ fraudulent borrowers without prejudice to the criminal proceeding underway against such borrowers and all such cases of compromise settlements should be vetted by Management Committee/Board of banks,” he said.
Source: HT
Top 50 wilful defaulters owe over Rs 87,000 crore to banks; Mehul Choksi leads list
