Wilful defaulters owe over Rs 3.11 lakh crore to banks as on 30 June 2022

Wilful defaulters owed over Rs 3.11 lakh crore to banks as on 30 June 2022, most to the public sector banks, data provided by Minister of State for Finance Bhagwat Karad in the Rajya Sabha showed.

These wilful defaulters owed the maximum Rs 75,800 crore to SBI, Rs 38,110 crore to PNB, Rs 32,000 crore to Union Bank of India and Rs 25,179 crore to Bank of Baroda. Among private sector banks, Kotak Mahindra Bank was the worst victim of wilful defaulters, who owed Rs 16,059 crore.

The minister further informed the parliament that total number of wilful defaulters having outstanding loan of ₹ 25 lakh and above increased from increased 9661 in June 2017 to 14,886 in June 2022. Public sector banks reported 12,439 whereas private sector bank reported 2,447 wilful defaulters as on 30June 2022.

According to RBI there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks as on 30 June 2017. The same stands at 14,485 and 401 respectively as on 30 June 2022. Further, the list of suit-filed wilful defaulters of ₹ 25 lakhs and above is available in the public domain on the websites of the Credit Information Companies (CICs) and that of non-suit filed wilful defaulters is confidential in nature and are not in public domain.

Giving details of the action taken by the directorate of Enforcement (ED), Karad said that the ED has attached assets worth ₹19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi since May 2017 under the prevention of Money Laundering Act (PMLA). Out the of Rs 19,312 crore, assets worth Rs 15,113 crore have been restituted to the public sector banks.

The Minister said that ED has informed that 515 fraud cases, including cases related to wilful defaulters have been recorded since 1 May 2017 under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

As on 15 December 2022, in these cases, assets worth Rs 44,992 crore have been attached and 39 Prosecution Complaints (PCs) have been filed by the Directorate.

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Meanwhile, Karad also informed the parliament that Scheduled Commercial Banks have recovered an aggregate amount of ₹ 6,59,596 crore, including recovery of ₹ 1,32,036 crore from written-off loan accounts during the last five financial years.

He also reiterated that banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available, such as filing of a suit in civil courts or in Debt Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, through negotiated settlement/compromise, and through sale of non-performing assets.

Amount owed by wilful defaulters as on 30 June 2022: