Lok Sabha Question No. 1020 (UNSTARRED), answered on 2016-04-29
Subject: Cases against Loan Defaulters
Ministry: FINANCE
Asked by: ANANT KUMAR DATTATREYA HEGDE, KUNWAR PUSHPENDRA SINGH CHANDEL, C. N. JAYADEVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA UNSTARRED QUESTION NO 1020 TO BE ANSWERED ON THE 29 th   APRIL, 2016/ VAISAKHA 9, 1938 (SAKA)

CASES AGAINST LOAN DEFAULTERS 1020. SHRI ANANTKUMAR HEGDE, SHRI KUNWAR PUSHPENDRA SINGH CHANDEL,

SHRI C.N. JAYADEVAN

Will the Minister of FINANCE be pleased to state:

- (a) whether the public and private sector banks  have  filed cases in courts against loan defaulters/companies in the recent past;
- (b) if so, the details of such cases filed during the last three years along with the outstanding amount against the said defaulters by these banks, bank and State/ UT-wise;
- (c) whether the Supreme Court has asked Reserve Bank of India (RBI) to hand over a list of loan defaulters/companies, if so, the details thereof; and
- (d) the steps taken/being taken by the Government to recover the loans from the said defaulters?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a) &(b): The legal mechanisms available to lenders for recovery of their loans are outlined in The  Recovery  of  Debts  Due  to  Banks  &  Financial  Institutions  (RDDBFI)  Act,  1993,  The Securitization  and  Reconstruction  of  Financial  Assets  and  Enforcement  of  Security  Interest (SARFAESI) Act, 2002 & Lok Adalats. The details of cases filed along with the outstanding amount for  the  last  three  years  for  Scheduled  Commercial  Banks  (SCBs)  under  these  channels  are  as follows:

(Rs. Crore)

|                      | 2012-13              | 2012-13         | 2013-14              | 2013-14         | 2014-15              | 2014-15         |
|----------------------|----------------------|-----------------|----------------------|-----------------|----------------------|-----------------|
| Channels of Recovery | No of cases referred | Amount involved | No of cases referred | Amount involved | No of cases referred | Amount involved |
| LokAdalat            | 8,40,691             | 6645            | 16,36,957            | 23205           | 29,58,313            | 30979           |
| DRTs                 | 13,408               | 31049           | 28,258               | 55318           | 20,635               | 1,19,063        |
| SARFAESI             | #1,90,537            | 68127           | #1,94,707            | 95251           | 1,75,355             | 1,61,095        |
| Total                | 10,44,636            | 105821          | 18,59,922            | 173774          | 31,54,303            | 3,11,137        |

# no. of notices issued.

- (c): Reserve Bank has submitted to the Hon'ble Supreme Court a list of defaulters above Rs. 500 crore in a sealed cover claiming that the said information is confidential, as it is exempt from disclosure under Section 45 E of RBI Act.
- (d):  The  government  has  taken  specific  measures  to  address  issues  in  sectors  such  as Infrastructure (Power, Roads etc.), Steel and Textiles, where incidence of NPAs is high. The government  has  also  approved  establishment  of  six  (6)  new  Debt  Recovery  Tribunals (DRTs), to speed up the recovery of bad loans of the banking sector, in addition to existing thirty  three.  Reserve  Bank  of  India  (RBI)  has  also  undertaken  steps  which  include  (i) Formation of Joint Lenders' Forum (JLF) for revitalizing stressed assets in the system, (ii) Flexible Structuring for long term project loans to Infrastructure and Core industries, and (iii) Strategic Debt Restructuring (SDR) scheme. The Government has recently issued advisory to  banks to take action against guarantors in event of default by borrower under relevant sections  of  SARFAESI  Act,  Indian  Contract  Act  &  RDDB&FI  Act,  since  in  the  event  of default, the liability of the guarantor is co-extensive with the borrower.

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