There has been raising concerns about rising amount of loans after the incident of Vijay Malya running away with the borrowed money. According to data, only 57 borrowers has defaulted on bank loans which are worth to Rs. 85,000 crore.
Supreme court declared this after perusing a report which was submitted by Reserve Bank of India (RBI) regarding persons who has taken loans over Rs 500 crore. They asked the central bank regarding why their names should not be made public.
Apex Court judge message to RBI
Bench headed by Chief Justice T S Thakur said, “Who are these people who have borrowed money and are not paying back? Why this fact that the person has borrowed money and not paying back be not known to public.”
Bench was comprising of Justices D Y Chandrachud and L Nageswara Rao and said that if the amount is lowered below Rs 500 crore then the default amount would cross Rs one lakh crore. Observing that if people are filing an RTI query they have right to know who the defaulters are. So bench asked the Reserve Bank of India (RBI) regarding why the information on defaulters should be withheld.
Further adding bench says, “People should know how much money a person has borrowed and how much money he needs to pay back. The amount payable should be known to public. Why should you withhold the information.”
Counsel is appearing for the RBI opposing the suggestion and said that not all of the defaulters are wilful. Central Banks says that they are working in the interest of Banks and names of the defaulters can not be made public as per the statute.
Concerns regarding RTI follow up
Replying to the same bench says that, “You (RBI) must work in the interest of the country, not just in the interest of banks.” Advocate Prashant Bhushan who is appearing for the NGO Centre for Public Interest Litigation (CPIL) has favoured the disclosure of the outstanding loan amount. It even sited the apex court verdict of December 2015 for claiming that RBI has to provide all of the information.
Bench said that it will be hearing on 28th October regarding the matter over the aspect of disclosure of name of defaulters. Apex court has even expressed concerns over growing amount of loans not being returned.
It even said that people are taking thousands of crores and running away by declaring their companies insolvent, but the poor farmers which are taking smaller amounts of Rs. 20,000 or Rs. 15,000 suffers.