A response to a Right to Information (RTI) application from the Reserve Bank of India (RBI) identified 296 companies as wilful defaulters, among which 25 such companies are from Andhra Pradesh and Telangana and mostly based in Hyderabad. Each of these companies owe Rs 100 crore or more to various banks.
According to an RTI response that was given to Hyderabad-based Society for Safety of Public and Good Governance (SSP&GG), as of September 30, 2020, the 296 companies together owe Rs 1.25 lakh crore in loans.
The defaulter companies from Telangana and Andhra owe Rs 9,975 crore to different banks. The RTI response said that Deccan Chronicle Holdings Ltd allegedly owed Rs 1801 crore while VMC Systems Limited allegedly owed Rs 1331 crore.
Earlier, Guntur-based Transstroy Ltd, owned by former MP Rayapati Sambashiva Rao had come under the scanner of the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). VMC Systems was also reportedly served notices by the CBI.
Among the list of all wilful defaulters Gitanjali Gems Limited tops it, allegedly owing Rs 5747 crore, while Reo Agro Limited stood second, allegedly owing Rs 3909 crore.
The RTI application had sought the list of people who have borrowed Rs 50 lakh and above across all the banks in the country and who have willfully defaulted in repayment of loans across all banks in the entire country.
The application also asked for “a complete breakup details such as name of the borrower, amount availed and outstanding balance to be paid.”
#RTI Reply from @RBI regarding the Willful Defaulters & their Amount owed as on 30th Sep 2020 across all #banks
— Society for Safety of Public and Good Governance (@SSPGHyd) February 14, 2021
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The data was sourced from the Central Repository of Information on Large Credits (CRILC). The RBI said that it only named the companies and not individuals citing provisions of the RTI Act, 2005, which exempts the public disclosure of personal and individual information.