Govt to act tough against wilful defaulters; Rs 50,000 crore loans under scanner
NEW DELHI: In order to clean bad debt mess, the government and banks are reportedly getting prepared to act tough against loan defaulters who are capable of paying their loans but have defaulted payments.
According to business news website Moneycontrol, the government has collated information on bad loans worth Rs 50,000 crore taken by a large list of promoters and corporate houses including diamond traders, two grounded airlines, a central government commodity trading agency, an erstwhile state government-promoted communication undertaking, a regional industry association, a media house with operations across the country, a multi-state agricultural cooperative, mining companies, realty developers, garment brands, and several individual proprietors.
The government and banks feel that despite having capacity to repay, these wilful defaulters have not repayed the loans and have diverted the funds to other ventures.
There are apprehension that few defaulters have even monetised the assets pledged to get loans without knowledge of banks and thus require an immediate action.
Besides, the government has also asked banks to start forensic audits on top 50 large corporate defaulters. Comptroller And Auditor General (CAG) has asked the banks to audit top 50 corporate defaulters and also find any criminal intent behind the default.
According to reports, the government may also take penal action if any criminal intent would be found after completion of forensic audit.
The move is part of government's effort to recover bank dues from defaulters as they are saddled with a pile of bad debt, putting their credit worthiness at risk.
In recent years, several prominent corporate groups have found it difficult to repay their loans, including the liquor baron Vijay Mallya, who owes more than Rs 7,000 crore to a group of lenders including SBI.
According to business news website Moneycontrol, the government has collated information on bad loans worth Rs 50,000 crore taken by a large list of promoters and corporate houses including diamond traders, two grounded airlines, a central government commodity trading agency, an erstwhile state government-promoted communication undertaking, a regional industry association, a media house with operations across the country, a multi-state agricultural cooperative, mining companies, realty developers, garment brands, and several individual proprietors.
The government and banks feel that despite having capacity to repay, these wilful defaulters have not repayed the loans and have diverted the funds to other ventures.
There are apprehension that few defaulters have even monetised the assets pledged to get loans without knowledge of banks and thus require an immediate action.
Besides, the government has also asked banks to start forensic audits on top 50 large corporate defaulters. Comptroller And Auditor General (CAG) has asked the banks to audit top 50 corporate defaulters and also find any criminal intent behind the default.
According to reports, the government may also take penal action if any criminal intent would be found after completion of forensic audit.
The move is part of government's effort to recover bank dues from defaulters as they are saddled with a pile of bad debt, putting their credit worthiness at risk.
In recent years, several prominent corporate groups have found it difficult to repay their loans, including the liquor baron Vijay Mallya, who owes more than Rs 7,000 crore to a group of lenders including SBI.
