The
Supreme Court on 16th February 2016 directed the Reserve Bank of
India to submit the list of companies that had taken bank loans of Rs 500 crore or above and defaulted in repayment.
o
A Bench headed by Chief Justice TS
Thakur asked the RBI to submit the list in a sealed cover as the regulator
pleaded against making the information public, which was illegal.
o
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.
o
The Bench was hearing a PIL by CPIL on
the non-performing assets of Housing and Urban Development Corporation (HUDCO).
o
Arguing for CPIL, counsel Prashant
Bhushan said the problem of NPAs was no longer restricted to HUDCO.
o
He cited a recent information
collected under the RTI, which showed that the top
10 banks had written off more than Rs 80,000 cr recently.
o
RBI had also allowed restructuring of
Rs 3 lakh crore (Rs 3 trillion) debt of several companies, Bhushan said.
o
All this showed the banks and
financial institutions in bad light and that the tax payers money was being
wasted.
o
Recording the submissions, the SC made
the RBI as a party to the case and sought the defaulters list.
Post A Comment: