Supreme Court asks RBI to give list of loan defaulters

New Delhi: The Supreme Court on Tuesday directed 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 concern over the rise of bad loans, the apex court also asked the RBI to provide within six weeks the list of companies whose loans have been restructured under corporate debt restructuring schemes.

A bench headed by Chief Justice T S Thakur asked for the list of loan defaulters to be placed before it in a sealed cover.

The bench headed by Justice TS Thakur 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.

The court made RBI party to a PIL filed in 2005 by an NGO Centre for Public Interest Litigation (CPIL) in which it has raised the issue of loans advanced to some companies by state-owned Housing and Urban Development Corporation (HUDCO).

The bench while observing that ‘bad debts were plaguing the public sector banks’, expressed surprise over the fact that no concrete steps had been taken for the recovery of loan from the defaulters.

"You have a list of major defaulters who run empires and yet default," the bench said during the hearing.

(With agency inputs)

News24 Bureau