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Wilful defaulters increase, owe over Rs 1.10 lakh cr to PSBs

IANS  |  New Delhi 

The number of wilful defaulters, who did not repay their to state-run banks, increased by 1.66 per cent to 9,063 during the first nine months (April-December) of the current fiscal, Parliament was informed on Friday.

The amount involved on this count for public sector banks (PSBs) is over Rs 1.10 lakh crore, of State for Finance told the Lok Sabha in a written reply.

"The amount involved for PSBs is reported as Rs 1,10,050 crore," he said.

"The total number of wilful defaulters is 9,063, which represents a marginal increase of 1.66 per cent during the first nine months of the current financial year."

This is according to data reported by PSBs, while there are provisions for penal measures and criminal action against wilful defaulters as per the guidelines of the Reserve (RBI), Shukla added.

Moreover, market regulator (SEBI) has issued regulations barring companies with wilful defaulters "as promoters/directors from accessing capital markets to raise funds", he said.

"Amendment has (also) been effected to the Insolvency and Bankruptcy Code, 2016, for barring wilful defaulters from participating in the resolution process."

"As per the data from PSBs as on 31.12.2017, they have registered 2,108 FIRs against wilful defaulters, filed 8,462 suits for recovery from wilful defaulters and initiated action under the SARFAESI Act, 2002 in respect of 6,962 cases of wilful defaulters," he added.

The SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) allows banks and other financial institutions to auction residential or commercial properties to recover

The Minister's statement comes in the wake of the Rs 12,600-crore fraud on the state-run (PNB) by accused diamantaire and his uncle Mehul Choksi, reported by the last month.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 18:08 IST