SC asks Centre why names of defaulters should not be made public

NEW DELHI : The Supreme Court questioned the Centre and Reserve Bank of India (RBI)’S policy to keep the names of defaulters a secret, saying it was in public interest to reveal these details. “Who are the people who owe money over ₹500 cr? How does it affect you?” a bench headed by Chief Justice TS Thakur asked solicitor general Ranjit Kumar, appearing for the Centre and the RBI counsel. It said a person seeking information regarding defaulters must be provided with the details under the Right to Information Act (RTI).

The court noticed only 57 borrowers had not paid back bank loans that run to a whopping ₹85,000 crore. Kumar argued that the rules do not permit disclosure of the names held in a fiduciary relationship. RBI also took a similar stand. He said a five-member committee was constituted to examine the allegations of default.

Prashant Bhushan appearing for the Centre for Public Interest Litigation (CPIL) opposed Kumar and suggested that a former RBI governor Raghuram Rajaram-headed committee should probe the allegations.

The bench declined the suggestion, saying Rajan headed the RBI that has been accused of inaction. Although the Centre wanted four weeks time, the bench fixed the case for a hearing on October 28.

The court is dealing with a 2003 public interest litigation (PIL) filed by CPIL which had alleged that the state-owned Housing and Urban Development Corporation (HUDCO) had writ