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Why don't PSBs invoke personal guarantees of promoters: SC on bad loans

Top court asks Finance Ministry to look into plea that claims a loss of hundreds of crore every day due to loan defaults

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Supreme COThe bench observed that since the petitioners claim the public sector undertakings are not complying with this circular, "We think you should first go to the ministry," said the bench.urt

IANS New Delhi

3 min read Last Updated : Jul 21 2020 | 11:59 AM IST

The Supreme Court has asked the Ministry of Finance to look into a plea that claimed a loss of hundreds of crore every day, as the public sector banks are not invoking personal guarantees of big corporates who have defaulted on loans.

A bench comprising Justice R. F. Nariman and Navin Sinha asked the petitioners, Saurabh Jain and Rahul Sharma, who filed the PIL, to move the Finance Ministry with a representation within two weeks. The top court observed that the issue is important and the ministry should respond after the petitioner has made the representation before it. The matter

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