BusinessLogrBusinessLogr
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Supreme Court to decide whether names of big loan defaulters be made public
Share
Aa
BusinessLogrBusinessLogr
Aa
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Follow US
© 2023 BusinessLogr News Network.
BusinessLogr > News > Supreme Court to decide whether names of big loan defaulters be made public
News

Supreme Court to decide whether names of big loan defaulters be made public

sristy
Last updated: 2016/10/27 at 10:06 AM
sristy Published October 27, 2016
Share
3 Min Read
SHARE

On 30 March, the RBI had submitted a list of big loan defaulters in a sealed envelope and said that disclosing their names may have an adverse impact on businesses. Photo: Pradeep Gaur/MintOn 30 March, the RBI had submitted a list of big loan defaulters in a sealed envelope and said that disclosing their names may have an adverse impact on businesses. Photo: Pradeep Gaur/Mint

New Delhi: The Supreme Court said on Monday that it will decide whether the names of big loan defaulters could be made public.

Chief Justice T.S. Thakur, justices D.Y. Chandrachud and L. Nageswara Rao asked why names of defaulters of loans above Rs500 crore should not be made public.

In its response, the Reserve Bank of India (RBI) told the court that it is in the interest of banks that names of companies remain undisclosed. Besides, not all companies were wilful defaulters.

“You must work in the interest of the country, not the banks,” the court told RBI. “We are not interested whether these companies and individuals are wilful defaulters or not. We just want to know why there must be secrecy on these names.”

The court agreed to hear the centre and RBI on the issue on 28 October.

On 30 March, RBI had submitted a list of big loan defaulters in a sealed envelope and said that disclosing their names may have an adverse impact on businesses.

While the names of individual defaulters are made public by banks, the same rule does not apply to companies. On 29 September, RBI issued a notification to banks setting norms for publishing photographs of wilful defaulters in view of the ‘sensitivity’ of the issue.

Mint reported on 12 October that even after working on recovery with a single-minded focus, the banking system is yet to see a meaningful decline in the stock of non-performing assets worth Rs6 trillion.

According to RBI, annual recovery as a percentage of amount of cases filed under SARFAESI Act, DRT and Lok Adalats fell from 20% in FY14 to 9% in FY16. However, with the recent amendment to these laws, bankers are hopeful that recovery will pick up.

In April, the court had asked the centre to set up a committee to look into the issue of bad loans being written off by public sector banks.

The centre told the court that a committee has been set up and a report will be finalised within a week.

The court on 16 February made the central bank a party “in public interest” to a 2003 case related to bad loans advanced to a few companies by state-owned Housing and Urban Development Corp. Ltd.

The case was filed by the centre for Public Interest Litigation, an activist organization headed by lawyer Prashant Bhushan.

[“Source-Gadgets”]

You Might Also Like

Essential Tips for Maintaining Your Vehicle for Longevity and Performance

The Magnificent 7.2 Carat Diamond Ring: A Symbol of Luxury and Elegance

International Companies Halt Investments in India Under Government Pressure

Best 100+ Kedarnath Mahadev Quotes Shayari Status in Hindi

India receives foreign direct investment

TAGGED: Be, big, court, decide, defaulters, Loan, made, names, of, public, Supreme, to, whether
sristy October 27, 2016
Share this Article
Facebook Twitter Email Print
Share
Previous Article IDBI Bank Q2 profit halves to Rs56 crore as NPAs nearly double
Next Article Communications Minister to Meet Telcos Over Call Drop Issue on November 1

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • 20 Fitness Franchises: Planet Fitness and Beyond
  • 18 Tea Franchises to Challenge Teavana

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • 20 Fitness Franchises: Planet Fitness and Beyond
  • 18 Tea Franchises to Challenge Teavana

Recent Posts

  • Why a cutting-edge billing system is essential in 2025: Accelerate Your Telecom Growth
  • 5 things to know in life sciences: Week of April 21, 2025

© 2023 BusinessLogr News Network.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?