Lok Sabha Question No. 851 (UNSTARRED), answered on 2018-12-14
Subject: Disclosure of Names of Loan Defaulters
Ministry: FINANCE
Asked by: PREM SINGH CHANDUMAJRA

## GOVERNMENT  OF INDIA

## MINISTRY  OF FINANCE DEPARTMENT  OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED  QUESTION  NO: †851

TO BE ANSWERED  ON THE 14 th  DECEMBER,  2018/AGRAHAYANA 23, 1940 (SAKA)

## QUESTION DISCLOSURE OF NAMES OF LOAN DEFAULTERS

## †851:  PROF.  PREM SINGH CHANDUMAJRA:

Will  the Minister  of FINANCE  be pleased to state:

- a) whether  the Central  Information  Commission  has ordered  public  disclosure  of names of those loan defaulters  who  have wilfully failed  to make  repayment  of loans;
- c) the total  number  of such defaulting  individuals  and companies  as per the latest  estimate;  and
- b) if so, the details  thereof;
- d) the total  amount  of loan  outstanding  against  the said individuals  /companies?

## ANSWER To be answered by

## (SHRI SHIV PRATAP  SHUKLA)

## THE MINISTER  OF STATE  IN THE  MINISTRY  OF FINANCE

(a) to (d): Reserve  Bank  of India (RBI) has informed  that  it had received  an order  dated 20.8.2018  from CIC asking  RBI to explain  the action taken  or contemplated  to be taken  to recover  loans from wilful defaulters  of Rs. 50 crore  and above,  and that  the order  also stated that  if RBI could  not submit  any part  of  the  information, it  may   explain   why   it  should   not  be  directed   to  publish   the  details   of information  sought  including  the names of wilful  defaulters.

RBI has further  informed  that  the above submissions  were  not considered  favourably  by  CIC,  and CIC issued  a  Show   Cause   Notice   cum  Order   dated  2.11.2018   and  subsequently   another   Order   dated 16.11.2018.  RBI has informed  that  it has since approached  the High  Court  of Bombay  for grant  of ad interim relief  in the matter.

RBI made its submissions  before CIC vide letter  dated 19.9.2018,  giving  details  of its existing  guidelines to banks  for declaring  borrowers  as wilful  defaulters,  as also the action required  to be taken  against such  wilful   defaulters.   As  regards   disclosure   of  wilful   defaulters,   RBI  submitted   to  CIC   that   it  was collecting   data  of  wilful   defaulters   up to  September   2014,  that   from   December   2014  onwards   this information   is  being   collected   and  disseminated   by   Credit   Information   Companies   (CICs),   and  that some part of information  is, however,  received  by  RBI as reported  by  banks  in the Central  Repository of Information  on Large Credits  (CRILC)  database.  Further,  it was explained  in RBI's submissions  to CIC that the provisions  of section  45E of the Reserve  Bank of India Act,  1934 prohibit  RBI from disclosure  of credit  information. RBI also submitted  that  in a case pending  before the Supreme  Court, RBI had submitted  a list of defaulters  above Rs. 500 crore  in a sealed cover claiming  that  it may  not be disclosed,  and that  the matter  is still  under the  consideration  of the Supreme  Court.

Public   Sector  Banks  have  reported   a  total   of  9,866  wilful   defaulters   involving   an  amount   of Rs. 1,47,081 crore,  as of September  2018.