CONFISCATE PROPERTY AND PUNISH WILFUL CORPORATE DEFAULTERS FOR NOT RETURNING BANK LOANS
Banking industry in India is struggling with NPAs or bad loans. Big corporates and rich people think that they can easily cheat the banking industry and remain fair in the eyes of law because there are no stringent provisions to punish those responsible for the wilful default in returning the principal and interest amount of the loan.
Vijay Mallya is the latest case in the long list of such wilful defaulters. He owes banks over 9000 crores and he has run away on March 2, 2016 to U.K. pretending that he will soon return to India to prove himself a law abiding citizen. If he does not return, will the be brought back by E.D. and put behind the bars.
The 17 - lender group headed by SBI is seeking repayment of 4900 crore as upfront plus interest. They want cash on table 2000 crore by September and rest afterwards. Bankers have to respond to the proposal at the next Supreme court hearing Scheduled for April 26, 2016. and Mallya has to disclose details of assets by April 21.
Mallya is not alone. There are 44 companies in all that owe 4.8 lakh crore to the public sector banks like SBI, PNB, BOB, Canara Bank etc. As per information provided by Credit Information Bureau of India (CIBIL), there are 18176 wilful defaulters in the country owing 2,35,000 crore. These borrowers are either individuals or corporates. These owe each between 2 lakh to 1 crore to banks in India. Upto September 2015 banks had lodged FIR in the police against only 1624 defaulters in a list of 7265 such big defaulters CIBIL has given. 50 Indian Commercial banks out of a total of 90 have been cheated by wilful defaulters. EQUIFAX, EXPERIAN and CRIF have also released their own lists of such wilful defaulters. Why officers and employees of loaning banks are not held liable for these bad loans? Why their salaries, promotions and pensions not stopped and why they are still roaming free without any fear? A lay man has to run from pillar to post for a small bank loan and if he defaults he is held accountable. Banking industry in India is to-day running in crisis. 73% of bad loans are from rich persons like Mallya. Many of these unpaid loans are being written off in the name of provisioning and each year banks are increasing their provisioning out of profit. Why the tax payer should pay the price for mistakes committed by wilful defaulters? The government of India must initiate criminal proceedings against persons like Vijay Mallya and their properties in India must be confiscated immediately till the loan is completely paid off. Strong political will is also required in tackling such defaulters . The action should be so strong that corporates will think twice before going the way of Vijay Mallya. If there is any legal himdrance the parliamentarians should stand together to give extra teeth to the judiciary.