Jump to content
News Ticker
  • NPAs under PM Modi's Mudra scheme jumped 126% in FY19
  • shows RTI
  • RTI query reveals banking frauds of ₹ 2.05 Trillion reported in the last 11 years
  • 509 per cent rise in cases under child labour law: Study
  • The Central Information Commission has allowed disclosure of file notings on the mercy petition of a rape and murder convict, rejecting the government's contention that the records cannot be disclosed as these are privileged documents under Article 74(2) of the Constitution.
  • Electoral bonds worth over ₹5,800 crore were bought by donors to fund political parties between March 1, 2018 and May 10, 2019, a Right to Information reply has said.
  • Don't pay 500/- for answer sheet now- Supreme Court says if Answer sheet is asked under RTI, RTI Fees will be governed
Atul Patankar

Banks shy away from revealing big defaulters' names

Recommended Posts

Atul Patankar

As reported by C Unnikrishnan at timesofindia.indiatimes.com on 21 September 2009

 

MUMBAI: Although a Union finance minister had once described the rising non- performing assets (NPA) of nationalised banks as a loot, public sector banks are unwilling to divulge the names of those who have defaulted on huge loans. None of the 25 public sector banks who were asked to name big defaulters under the Right to Information did so. Sixteen of these banks merely gave figures of the outstandings while nine refused to even reply. According to information provided under RTI, the banks have written off over Rs 15,000 crore in the period 2003-2008.

 

The banks reasoned that furnishing the names is not in public interest and is an invasion into the privacy of borrowers.

 

The RTI application was filed by Borivili resident Richie Shoaib Sequeira on the directions of the Bombay high court. On Thursday, chief justice Swatanter Kumar and Ajay Khanwilkar, while hearing his PIL, directed that notices be issued to Union of India, RBI and other banks. The court also directed Sequeira to make the state crime investigation department a party to the PIL. The matter will come up for hearing on October 15.

 

At the last hearing, the HC had asked Sequeira to invoke RTI or any other law to gather details from the banks. Sequeira had filed a PIL, saying there has been no strict vigil by the finance ministry and RBI while writing off loans by the banks and the Debts Recovery Tribunal (DRT) had failed to recover the debts. The RBI, finance ministry, law ministry and DRT have said that in their replies they have no records of the write-offs and one-time settlements between the borrowers and banks.

 

The PIL also said that no rules have been framed by the finance ministry while writing off loans by the banks, which smacks of corruption. Some of the banks in their replies have said that the write-off is done in accordance with the guidelines framed by the board of directors. During a debate in the Lok Sabha in 2002, the then finance minister Jaswant Singh had described the NPA menace as a loot.

 

The banks which refused to disclose details about the defaulters include SBI its associates, Union Bank, Bank of Baroda, Central Bank of India, Dena Bank, Andhra Bank, Oriental Bank of Commerce, Syndicate Bank and Indian Overseas Bank. Banks like Corporation Bank, UCO Bank, BoI and Allahabad Bank refused to reply to the RTI questions.

 

The banks mostly approach the DRT, attach assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act or go in for a one-time settlement to recover whatever dues they can. The DRT, set up for expeditious adjudication and recovery of debts owed to banks and financial institutions, recovered just 32% of the total outstanding amount in the period 2001-07.

 

In the case of State Bank of Travancore, in the period 2003-2008, of the Rs 10,162 crore claimed by the bank, it has recovered only 15%. Another 50% of the claims is yet to be decided. In the one-time settlement, the bank has forgone another Rs 800 crore.

 

Dena Bank has managed to recover only Rs 725 crore of the Rs 151,85 crore for the period 2003-2008. And the bank has foregone another Rs 950 crore as part of one-time settlement in the period 2006-2008. In the case of Oriental Bank of Commerce, the bank has foregone Rs 1353.5 crore in the last four years. Union Bank of India has recovered only Rs 3,261.5 crore of the Rs 7,623 crore in the period 2006-08.

 

Source: Banks shy away from revealing big defaulters' names - Mumbai - City - NEWS - The Times of India

Share this post


Link to post
Share on other sites
spmehta46

what is the latest position of PIL and the number if you can give. I am aware of similar kind of matter in Gujarat High court. Thanks.Shailesh Mehta.(Posting of mail ids is against RTI India - Forum Rules - hence deleted)

Share this post


Link to post
Share on other sites

  • Similar Content

    • Shrawan
      By Shrawan
      Central Information Commission



      Decision No. 297/IC(A)/2006
      F. No. CIC/MA/A/2006/00663
      Dated, the 21st September, 2006



      Name of the Appellant : Shri S. Gangaiah Nayakar, 3/488, Rajapalayam Salai, T. N.C.Alangulam, District - Virudhunagar-626127
      Name of the Public Authority: Indian Overseas Bank, Customers Service Department, Central office, 763,Anna Salai, Channai-600 002. DECISION
       
      The appellant had sought certain information, which was largely furnished to him.
      The CPIO however denied the information relating to the details of loan accounts of another person and other documents submitted by him. The CPIO contented that the information sought is related to personal information, which is exempted u/s 8(1)(j) of the Act. The appellate authority upheld the decision of the CPIO.
      There is no denial of information to the appellant. The Banks are expected to maintain confidentiality of the accounts of its customers and that the documents submitted by its customers do not fall under public domain. Hence, exempted u/s 8(1)(j) of the Act.
      The appeal is accordingly disposed of.
      Sd/-
      (Prof M. M. Ansari)
      Information Commissioner
      Download the decision from Download Segment



    • armyguy
      By armyguy
      This RTI is a powerful tool to expose major policy decisions. Recently a major breakthrough happened with effort in Delhi to privatize water supply in the city.
       
      Apparently, this was a proposed World Bank funded effort. The proposal was on since the mid nineties in complete secrecy. However, some news leaked out in to the press, and an RTI petition was filed asking for the files on this process.
       
      At first there was a lot of resistance, but finally the files were made public, and the story was shocking. Apparently, the World Bank was arm twisting and almost dictating policy to the government. The process of privatization (or any government work) takes place with bids by bidding companies. There is a two layered process, where first in this case the top six companies would be selected, and then in the second round, the best among them would be selected. Here, in the first round, Pricewaterhouse-Coopers, the well known consulting firm, had a bid that came in tenth. By law, they should have been eliminated. But the world bank insisted that PWC be considered. At first the government protested, but with continuous pressure relented, and declared PWC to be selected in the top six by declaring it to be an Indian company! In the next round, again PWC fared badly, with only a 67% score, and a terrible proposal. Again the world bank pressurized the government (by asking it to remove the people who evaluated the proposal), and forced the government to declare the PWC bid as the winner. Again, the government capitulated to pressure.
       
      It wasn’t just this, but the entire process of water privatization in this proposal was rather absurd, and would have affected millions of people adversely.
       
      Bowing to public pressure (after the dealings were revealed due to the RTI petition), the government scrapped the project completely.

Announcements

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use & Privacy Policy