November 12, 2019 | 10:32 AM IST
wilful defaulters

FM: In Modi raj there has been 60 per cent hike in wilful defaulters

Finance Minister Nirmala Sitharaman in a written reply in Lok Sabha stated that the number of wilful defaulters in nationalised banks has increased by over 60 per cent in the past five years. She was replying to a query whether the cases of wilful defaulters of banks have increased during the last five years.
In her response, she quoted that by the end of 2014-15 fiscal, the figure stood at 5,349. The number of such borrowers increased to 6,575 in 2015-16; it rose to 7,079 in 2016-17 and still further hiked to 7,535 in 2017-18.
She stated that Rs. 7,600 crore has been recovered under the Modi Sarkar from wilful defaulters till now.
She said, “Wilful defaulters are acted against comprehensively. Moreover, as per Reserve Bank of India’s instructions, wilful defaulters are not sanctioned any additional facilities by banks or financial institutions and their unit is debarred form floating new ventures for five years.”
It must be noted that as per the data reported by nationalised banks, suits for recovery have been filed in 8,121 cases till March, 2019. In cases involving secured assets, action under the provisions of SARFAESI Act has been initiated in 6,251 cases.
She informed that the government has also advised public sector banks to decide on publishing photographs of wilful defaulters as well as to obtain certified copy of the passport of promoters/directors and other authorised signatories of companies availing loans of more than Rs 50 cr. Also, the head of PSB have been empowered to request for insurance of look out circulars against wilful defaulters.
What is a wilful defaulter?
When a ‘unit’ fails to repay the loan amount it is termed as a defaulter and when this defaulter siphons away or tries to remove or dispose the loaned security or does not pay the loan amount even though it has the ability to repay it, the unit is termed as a wilful defaulter.

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