The Supreme Court today directed the RBI to provide a
list of companies, which had defaulted bank loans of over Rs. 500 crore
while expressing serious concern over the rise in bad loans.
A
bench headed by Chief Justice T.S. Thakur asked for the list of loan
defaulters to be placed before it in a sealed cover within six weeks.
The
bench, also comprising Justices U.U. Lalit and R. Banumathi, wanted to
know how the state-owned banks and financial institutions were advancing
large-scale loans without proper guidelines and whether there was
adequate mechanism to recover them.
The court made
RBI party to a PIL filed in 2005 by an NGO Centre for Public Interest
Litigation, in which it has raised the issue of loans advanced to some
companies by state-owned HUDCO.
Advocate Prashant Bhushan, appearing for CPIL, submitted that about Rs. 40,000 crore of corporate debt was written off in 2015.
His submission evoked response from the bench which said that bad debts were plaguing the public sector banks. — PTI
Source:- the Hindu, 17-Feb-2016
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