Supreme Court Wants To Know The Names Of Big Loan Defaulters

16/02/2016 6:28 PM IST | Updated 15/07/2016 8:26 AM IST
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NEW DELHI, INDIA - FEBRUARY 2: The Supreme Court has agreed to refer a curative petition challenging Section 377 of the Indian Penal Code to a five-judge constitution bench for hearing on February 2, 2016 in New Delhi, India. The LGBT community has expressed hope that the Supreme Court would protect and legalise their sexual rights. A bench headed by Chief Justice of India TS Thakur had earlier agreed to hear the curative petition against the apex court's December 2013 judgement upholding validity of Section 377 of the Indian Penal Code (IPC), which criminalises sexual activities against the order of nature, arguably including the homosexual acts, and a January 2014 order by which it had dismissed a bunch of review petitions. (Photo by Vipin Kumar/Hindustan Times via Getty Images)

Delhi -- Expressing serious concern over the rise in bad loans in India's banking system, the Supreme Court on Tuesday directed the Reserve Bank of India (RBI) to provide a list of companies which are defaulters of bank loans of over Rs 500 crore.

The apex court also asked the RBI to provide within six weeks the list of companies whose loans have been restructured under corporate debt restructuring schemes.

A bench headed by Chief Justice T S Thakur asked for the list of loan defaulters to be placed before it in a sealed cover.

The bench, also comprising Justices U U Lalit and R Banumathi, wanted to know how the state-owned banks and financial institutions were advancing large-scale loans without proper guidelines and whether there was adequate mechanism to recover them.

The court made RBI party to a PIL filed in 2005 by an NGO Centre for Public Interest Litigation (CPIL) in which it has raised the issue of loans advanced to some companies by state- owned Housing and Urban Development Corporation (HUDCO).

Advocate Prashant Bhushan, appearing for CPIL, submitted that about Rs 40,000 crore of corporate debt was written off in 2015.

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