Lok Sabha Question No. 1788 (UNSTARRED), answered on 2018-07-27
Subject: Loans of Wilful Defaulters
Ministry: FINANCE
Asked by: SRINIVAS KESINENI

## GOVERNMENT  OF INDIA

## MINISTRY OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED  QUESTION  NO: 1788 TO BE ANSWERED  ON THE 27 th  JULY,  2018/SHRAVANA 05, 1940 (SAKA) QUESTION LOANS OF WILFUL DEFAULTERS

## 1788:   SHRI KESINENI  NANI:

Will  the Minister  of FINANCE  be pleased to state:

- (a) the total  quantum  of outstanding  loans against  wilful  defaulters  during  the last three  years  and the current year,  Bank-wise;
- (c) the steps taken/being  taken  by  the Government  to reduce/correct  the statistics;
- (b) whether  there  has been any  growth  in the number  of wilful  defaulters  during  the said period  and if so, the details  thereof;
- (d) whether   the  mechanism   employed   to  recover   the  outstanding   loans  from  wilful   defaulters   has  been successful, if  so, the  details  thereof;  and
- (e) if not,  whether  a new  mechanism  for the recovery  of outstanding  loan   is needed,  if so, the  details  thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP  SHUKLA)

## To be answered by

- (a)  and  (b):  As  per  data  reported   by   Public   Sector   Banks   (PSBs),  bank-wise   details   of total   quantum   of outstanding  loans against  wilful  defaulters  of PSBs, and the number  of wilful  defaulters  of PSBs, at the end of each of the last three  financial  years and  the first  quarter  of the current  financial  year,  are at  Annexure.

For enabling   a  clean  credit   system in  future and  deterring   economic   offenders  from evading   the  process  of Indian  law   by   remaining   outside   Indian   jurisdiction, Government   has  introduced   the  Fugitive   Economic Offenders   Bill,   2018  to  provide   for  attachment   and  confiscation   of  fugitive   economic   offender's   property. Further,  Government  has advised PSBs to obtain  certified  copy  of the passport  of the promoters/directors and other  authorised  signatories  of companies  availing  loan  facilities  of more than  Rs. 50 crore.

- (c): A number  of steps have been taken  to reduce  incidence  of default  on account  of wilful  defaulters.  To deter wilful  defaulters,  as per RBI's instructions, they  are not sanctioned  any  additional  facilities  by  banks  or financial institutions, their   unit   is debarred   from floating  new  ventures  for five years,  and lenders  may initiate  criminal proceedings  against  them,  wherever  necessary.  As per data reported  by  PSBs, as on 30.6.2018,  2,348 FIRs have been registered  against  wilful  defaulters,  8,994 suits have been filed for recovery  from  them,  and action  has been initiated  under  the Securitisation and Reconstruction  of Financial  Assets and Enforcement  of Security  Interest Act,   2002  (SARFAESI   Act)  in  respect  of  7,471  cases  of  wilful   defaulters.   Further, as  per  Securities   and Exchange Board of   India Regulations, wilful defaulters and companies with wilful defaulters as promoters/directors are debarred  from accessing capital  markets  to raise funds. In addition,  the Insolvency  and Bankruptcy  Code,  2016 (IBC) has been amended  to debar wilful  defaulters  from participating in the insolvency resolution  process.
- (d)  and  (e):  The   mechanism   for  recovery   for  all  defaulters   covers  action   through, inter-alia ,  SARFAESI   Act, Debts Recovery  Tribunals, negotiated settlement,  Lok  Adalats and  IBC.

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As per data reported  by  PSBs, over the last three  financial  years,  and the first quarter  of the current  financial year,   an  aggregate   amount   of  Rs.  1,61,123  crore   has  been  successfully   recovered   through   the  recovery mechanism.

Annexure

## Public Sector Banks

| Bank                       | As on 31.3.2016   | As on 31.3.2017   | As on 31.3.2018   | As on 30.6.2018   |
|----------------------------|-------------------|-------------------|-------------------|-------------------|
| AllahabadBank              | 539               | 2,223             | 3,965             | 4,164             |
| AndhraBank                 | 3,964             | 3,934             | 3,957             | 3,937             |
| Bank ofBaroda              | 1,662             | 4,883             | 6,253             | 7,931             |
| Bank ofIndia               | 4,426             | 2,634             | 7,463             | 9,425             |
| Bank ofMaharashtra         | 751               | 822               | 1,518             | 1,518             |
| CanaraBank                 | 3,630             | 3,659             | 4,759             | 4,629             |
| CentralBankof India        | 4,409             | 4,921             | 6,197             | 6,197             |
| Corporation Bank           | 2,343             | 2,227             | 2,453             | 2,717             |
| DenaBank                   | 919               | 1,515             | 1,877             | 1,845             |
| IDBI BankLimited           | 3,064             | 3,131             | 4,828             | 5,372             |
| IndianBank                 | 328               | 1,082             | 1,373             | 1,361             |
| IndianOverseasBank         | 3,473             | 3,473             | 4,485             | 5,395             |
| OrientalBankof Commerce    | 3,799             | 4,307             | 4,215             | 4,483             |
| Punjab&SindBank            | 248               | 286               | 283               | 276               |
| PunjabNationalBank         | 11,486            | 12,278            | 15,190            | 15,355            |
| SyndicateBank              | 922               | 1,107             | 1,162             | 1,159             |
| UCOBank                    | 4,251             | 5,715             | 5,722             | 5,988             |
| UnionBankof India          | 3,446             | 3,784             | 5,103             | 5,167             |
| UnitedBank ofIndia         | 1,857             | 1,829             | 1,737             | 1,736             |
| VijayaBank                 | 958               | 3,464             | 5,041             | 5,249             |
| StateBank ofIndia          | 12,466            | 15,070            | 34,436            | 34,275            |
| StateBank ofBikaner&Jaipur | 2,100             | 2,260             | MergedwithSBI     | MergedwithSBI     |
| StateBank ofHyderabad      | 2,145             | 2,178             |                   |                   |
| StateBank ofMysore         | 1,079             | 1,388             |                   |                   |
| StateBank ofPatiala        | 1,899             | 3,123             |                   |                   |
| StateBank ofTravancore     | 566               | 1,086             |                   |                   |

Amounts in crore  Rs.

## Details of the number  of wilful  defaulters  of Public Sector Banks

| AllPublicSectorBanks   | 8,315   | 8,915   | 9,331   | 9,501   |
|------------------------|---------|---------|---------|---------|

Source: Public Sector Banks

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