The number of wilful defaulters in nationalised banks has increased by over 60 per cent to 8,582 in five years to March 2019, the government said on Monday. By the end of fiscal 2014-15, the figure stood at 5,349, Finance Minister Nirmala Sitharaman said in a written reply in the Lok Sabha.

A wilful defaulter is an entity or a person who has not paid back a loan despite the ability to repay it. The minister was replying to a question on whether there has been an increase in the number of wilful defaulters during the last five years.

Rising consistently since 2014-15, the number of such borrowers increased to 6,575 in 2015-16; 7,079 in 2016-17, and further to 7,535 in 2017-18.

“Wilful defaulters are acted against comprehensively. Moreover...as per the RBI’s instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions, and their unit is debarred from floating new ventures for five years,” said Sitharaman.

Recovery of ₹7,654 crore has been done from the accounts of wilful defaulters during the last five financial years, she said.

Data from nationalised banks till March 31, 2019 showed that suits for recovery have been filed in 8,121 cases. In cases involving secured assets, action under the provisions of SARFAESI Act has been initiated in 6,251 cases. There are 17 nationalised banks in India.

“Further, in accordance with RBI instructions of initiation of criminal proceedings wherever necessary, FIRs have been registered in 2,915 cases,” said Sitharaman.

For effective action against wilful defaulters fleeing Indian jurisdiction, the Fugitive Economic Offenders Act 2018 has been enacted to provide for attachment and confiscation of property, and has disentitled them from defending any civil claim.