In a major disclosure, the Ministry of Finance revealed that as of March 31, 2025, 1,629 company debtors have been recognized as wilful defaulters by public sector banks. These debtors collectively owe a staggering Rs 1.62 lakh crore, in response to info shared with the Rajya Sabha. The info, excluding abroad debtors, is compiled primarily based on reviews submitted by banks to the Central Repository of Info on Giant Credit (CRILC).
Minister of State for Finance Pankaj Chaudhary acknowledged, “As per knowledge reported by public sector banks within the Central Repository of Info on Giant Credit (CRILC), as on March 31, 2025, 1,629 distinctive debtors with mixture mortgage excellent of Rs 1,62,961 crore have been categorised as wilful defaulters.” This highlights the size of the monetary problem confronted by the banking sector.
The federal government has emphasised the measures being taken towards these defaulters, which embody the denial of further credit score services and restrictions on launching new ventures for a interval of 5 years. Firms related to these defaulters are additionally prohibited from accessing capital markets, limiting their capacity to lift funds. This method goals to discourage future defaults and preserve monetary self-discipline.
The Reserve Financial institution of India’s Grasp Instructions mandate banks to submit month-to-month lists of wilful defaulters to all Credit score Info Firms (CICs). These lists, which embody loans of ₹25 lakh and above, are publicly accessible on the web sites of firms akin to CIBIL and Experian. This transparency ensures that stakeholders are well-informed about potential dangers.
Furthermore, Pankaj Chaudhary famous that “banks can also provoke felony proceedings towards wilful defaulters in eligible circumstances.” This factors to the severity of the state of affairs and the federal government’s dedication to addressing it. Authorized actions function a deterrent and reinforce accountability amongst debtors.
Along with home measures, the federal government is coping with defaulters who’ve fled the nation. Underneath the Fugitive Financial Offenders Act, 9 people have been declared as fugitive financial offenders, with property price Rs 15,298 crore confiscated below the Prevention of Cash Laundering Act (PMLA). This demonstrates the federal government’s resolve to pursue offenders past nationwide borders.
The Ministry of Finance additional disclosed that “property amounting to Rs. 25,806.38 crore (approx.) have been restituted in financial institution fraud circumstances to the sufferer banks/ authentic claimants below PMLA which incorporates quantity confiscated in addition to the hooked up quantity restituted in the course of the trial earlier than Confiscation.” This means a proactive method to asset restoration, guaranteeing that funds are returned to rightful homeowners.
General, the federal government is intensifying efforts to curb wilful defaults, which have important implications for the banking sector’s stability and financial well being. The steps taken mirror a give attention to accountability and the prevention of additional monetary misconduct. Moreover, the federal government has been proactive in addressing the challenges posed by worldwide defaulters
