Lok Sabha Question No. 3473 (UNSTARRED), answered on 2022-08-08
Subject: Bank Loan Frauds
Ministry: FINANCE
Asked by: Ritesh Pandey

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-3473

ANSWERED ON- 08/08/2022

## BANK LOAN FRAUDS

## 3473. SHRI RITESH PANDEY

Will the Minister of FINANCE be pleased to state:-

- (a) the  details  of  the  top  companies  of  the  country  which  have  taken  loans  fraudulently  from public and private sector banks during the period of 2014-22;
- (b) the details of the major companies which have taken loans of more than Rs. 100 crores which have been declared Non Performing Assets (NPAs) afterwards in the year 2014;
- (c) whether action has been taken by the Central Bureau of Investigation for recovery of loans from the said companies and if so, the details thereof;
- (d) the number of companies whose assets have been seized to recover the loans; and
- (e) the details of the amount recovered from them and the details of the outcome thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

- (a)  to  (e):  The  Reserve  Bank  of  India  (RBI)  has  apprised  that  specific  information  on  'top Companies who have defrauded the banks' is not maintained by it. However, year -wise details of aggregate amount involved in frauds in respect of top 100 accounts, in public and private sector banks, based on the date of occurrence of frauds, are at Annex-1.

Under the provisions  of  section  45E  of  the  RBI  Act,  1934,  RBI  is  prohibited  from  disclosing borrower-wise credit information, since the credit information submitted by a bank is treated as confidential and is not to be published or otherwise disclosed. However, year-wise details of gross non-performing assets pertaining to borrowers (which are companies) and having funded amount outstanding of Rs. 100 crore and above, in the public and private sector banks are at Annex-2.

Central  Bureau  of  Investigation  has  apprised  that  recovery  of  loan  is  not  within  its  purview. However, as per the inputs received from the Directorate of Enforcement (ED), it has recorded around  515  cases  pertaining  to  bank  frauds  in  public  and  private  sector  banks,  under  the provisions of Prevention of Money Laundering Act, 2002 (PMLA) during 2014 to 2022. Further, it  has  attached  properties  worth  Rs.  47,099  crore  (approx.)  in  bank  fraud  cases  and  has  filed prosecution complaints before the special courts in 115 cases. Also, out of the aforementioned 515 cases, 137 cases pertain to the bank frauds, wherein amount involved is more than 100 crores in  each  case.    In  certain  cases  of  loan  fugitives,  ED  has  also  attached  assets  worth  Rs.  19,312 crore, up to 29.7.2022, under the provisions of PMLA which is 85.50% of the defrauded amount of Rs. 22,586 crore in these cases.

As per RBI data, public and private  sector banks have recovered Rs. 839,452 crore during  the financial years 2014-15 to 2021-22 in NPA accounts, including those reported as frauds.

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Lok Sabha Unstarred question no. 3473, regarding 'Banking Loan Frauds' Details of amount involved in frauds in respect of top 100 accounts, in public and private sector banks, based on the date of occurrence of frauds

(amount in crore Rs.)

| Financial Year   | Public Sector Banks   | Private Sector Banks   |
|------------------|-----------------------|------------------------|
| 2014-15          | 38,722                | 10,729                 |
| 2015-16          | 51,625                | 10,484                 |
| 2016-17          | 45,871                | 10,009                 |
| 2017-18          | 22,801                | 15,069                 |
| 2018-19          | 23,958                | 17,571                 |
| 2019-20          | 20,363                | 9,881                  |
| 2020-21          | 7,022                 | 3,496                  |
| 2021-2022        | 3,161                 | 406                    |

Source: Reserve Bank of India

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Lok Sabha Unstarred question no. 3473, regarding 'Banking Loan Frauds' Details of the gross non-performing assets of borrowers (which are companies) and having funded amount outstanding of Rs. 100 crore and above, in the public and private sector banks

(amount in crore Rs.)

| As on     | Funded Amount Outstanding   | Funded Amount Outstanding   |
|-----------|-----------------------------|-----------------------------|
| As on     | Public Sector Banks         | Private Sector Banks        |
| 31.3.2015 | 81,921                      | 11,370                      |
| 31.3.2016 | 307,513                     | 28,135                      |
| 31.3.2017 | 399,266                     | 56,392                      |
| 31.3.2018 | 571,676                     | 79,378                      |
| 31.3.2019 | 417,574                     | 114,276                     |
| 31.3.2020 | 334,892                     | 123,661                     |
| 31.3.2021 | 262,155                     | 91,308                      |
| 31.3.2022 | 216,206                     | 79,638                      |

Source: Reserve Bank of India

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