India News | Why is Govt Shying Away from Naming and Shaming Wilful Defaulters: Surjewala

New Delhi, Dec 22 (PTI) Congress leader Randeep Surjewala on Thursday accused the Narendra Modi government of demolishing the banking sector and making the nation indebted to looters by writing off loans worth Rs 19.34 lakh crore in the last six years, and asked why it was shying away from naming and shaming 4,394 new wilful defaulters.

He tweeted, "Modi Government has destroyed our banking sector by encouraging brazen 'loot and scoot'! Total amount owed by wilful defaulters is more than Rs 3 lakh crore. 4,394 new wilful defaulters have been added in last 5 years. Why is Modi Government shying in naming and shaming them."

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"Modi government's 'Amrit Kaal'? Demolishing Banking - making the nation indebted to looters! Wilful defaulters owe Rs 311,087.86 crore. Loan write-offs of Rs 19,34,304 crore...in 6 years. NPA slippage of Rs 36,34,049 crore," he said in another tweet.

Surjewala also tweeted the government's reply to his question in Rajya Sabha where Minister of State for Finance Bhagwat Karad said, "Reserve Bank of India (RBI) has informed that total number of wilful defaulters having outstanding loan of Rs 25 lakh and above in public sector banks was 8,045 as on 30.6.2017 and 12,439 as on 30.6.2022 whereas, in private sector bank it was 1,616 as on 30.6.2017 and 2,447 as on 30.6.2022."

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"RBI has informed that as on 30.6.2017, there were 8,744 suit-filed wilful defaulters and 917 non-suit-filed wilful defaulters in public and private sector banks, and as on 30.6.2022, the same stands at 14,485 and 401 respectively. Further, the list of suit-filed wilful defaulters of Rs 25 lakh 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," the minister also said in his written reply.

According to Karad's response, The Enforcement Directorate (ED) has informed that 515 fraud cases, including cases related to wilful defaulters, have been recorded since May 1, 2017 under the provisions of the Prevention of Money Laundering Act (PMLA).

"As on 15.12.2022, in these cases, assets worth Rs 44,992 crore (approximately) have been attached and 39 Prosecution Complaints (PCs) have been filed by the Directorate. Further, as on 15.12.2022, assets worth Rs 19,312.20 crore of wilful defaulters like Vijay Mallya, Nirav Modi and Mehul Choksi have been attached since May 2017 by the ED under PMLA, 2002, out of which, assets worth Rs 15,113 crore have been restituted to the public sector banks," Karad said.

According to the minister, banks themselves write off NPAs as part of their regular exercise to clean up their balance-sheet, avail tax benefit and optimise capital, in accordance with RBI guidelines and policy approved by their boards.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)