Loan Default Scam : Top banks mum on multi-crore bad debts as defaulters sink huge money!

Maharashtra Today Investigation

Mumbai : Amid the reports of top banks indulging in unjust means to help crorepatis convert ‘black’ into ‘white’, here comes a stunning revelation that may shatter the faith of ‘aam aadmi’ into these so called reputed financial institutes. Thousands of companies have been defaulting loans totaling in lakhs of crores, much higher than the country’s yearly budget, and the banks are doing nothing about it. A document in possession with Maharashtra Today shows a long list of defaulters. It carries the names of 1129 defaulter companies including KSL Group, LML Ltd and many others, each of whom is sitting on hundreds of crores of rupees borrowed from various national banks including top bankers like State Bank of India and its regional arms, Bank of India, Bank of Baroda, Allahabad Bank and several other banks.

Most of these companies are now branding themselves as bankrupt, sinking the common people’s money which these banks offer as loans to companies. Surprisingly, the list with MT carries only the names of defaulters owing upto Rs 300 crore. Besides, there are many more big defaulters owing Rs 500 crore and above, which takes the gross loan default to shocking high.

In March last year the Reserve Bank of India submitted to the Supreme Court a list of defaulters owing Rs 500 crore or more to public sector banks just three months after the apex court ruled that the RBI is “clearly not in fiduciary relationship with any bank” and that it cannot hide information solely because of the embarrassment it may cause. The Supreme Court had then questioned the Centre and Reserve Bank of India’s (RBI) policy to keep the names of defaulters a secret, saying it was in public interest to reveal these details. The court then noticed only 57 borrowers had not paid back bank loans that run to a whopping Rs 85,000 crore. The demand to make the list of major defaulters public has been raised from various quarters. Even the Opposition parties have been pushing the government to reveal the defaulters’ list, however nothing substantial came from the ruling parties as yet.

The Giant Killers

The list with MT shows that the loan amount which each company is defaulting ranges from Rs 12 crores to as high as around Rs 300 crores. The list figures out the defaulted amount in lakhs which runs into crores for each company. A grand total of the defaulted amount will certainly put the figures in lakhs of crores, which is alarmingly high. For example a list shows Mumbai-based Rajat Pharmachem Ltd defaulting a loan of Rs 29,195 lakh (Rs 291.95 crore), which it had borrowed from Bank from India. Giant pipe manufacturer PSL Ltd having its branches at various locations in India and UAE went wrong on repayment and defaulted Rs 30155 lakh (Rs 301.55 crore) borrowed from Canara Bank.

Group of companies big culprits

Similarly Kolkata-based Ramsarup Industries managed to have its way out through its cluster of industries and defaulted on separate loans taken from different banks. While Ramsarup Industries Limited defaulted loan of Rs 20,035 lakh (200.35 crore) borrowed from IDBI Bank, Ramsarup Loh Udyog gulped down Rs 9086 lakh of Oriental Bank of Commerce. Then Ramsarup Industrial Corporation borrowed and defaulted Rs 2478 lakh, of Indian Overseas Bank. Same is the story of Rama Education Society which defaulted Rs 10623 lakh of Punjab National Bank and also Rs 3143 lakh from Sydicate Bank. These are just few names from the endless list of defaulters which is being attached here with this news.

Another Mega Scam in the Making

At a time when commoners have been struggling to withdraw out their hard earned money from the banks, such a gigantic proportion of borrowers defaulting huge loans is quite a shocking revelation. Interestingly, the government’s top authorities too have been inactive despite knowing the humongous money turned into bad debt. The bankers have been deliberately avoiding action on these major defaulters. It is learnt that most of these loans are now being restructured to take them out of defaulters’ list, so as to paint the picture pink, yet again.

Maharashtra Today View

Even as the government is busy justifying its demonetisation move, the banks too are having their own scheme of things. The recent currency seizures amounting to crores of rupees from various professionals and businessmen across the nation have caught the media glare, and the role of bankers in the entire ‘black and white’ game surfaced on the top. These incidents are the testimony to this fact that all is not going well inside the plush corners of banks, from where the top bosses of the reputed financial institutes are operating. Now since the lid is blown off this mega loan default scam, the defaulters and the authorities involved in the malpractice should be brought to book. Atleast this is what is expected by aam aadmi, if not achche din!

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