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RBI writes off over Rs 68K cr. loans, Choksi among 50 top wilful defaulters: RTI

  •   Mon, Apr 27 2020 06:22:59 PM

Mumbai, Apr 27 (IANS): The Reserve Bank of India (RBI) has admitted to writing off a staggering amount of Rs 68,607-crores due from 50 Top Wilful Defaulters, including absconding diamantaire Mehul Choksi, according to a reply under RTI.

Prominent RTI activist Saket Gokhale had filed an RTI query seeking details of the 50 Top Wilful Defaulters and their current loans status till February 16.

"I filed this RTI because Finance Minister Nirmala Sitharaman and Minister of State for Finance Anurag Thakur, but they had refused to reply to this starred question asked in parliament by Congress MP Rahul Gandhi, in the last budget session, on Feb 16, 2020," Gokhale told IANS.

Disclosing what the government didn't, the RBI's Central Public Information Officer Abhay Kumar provided the replies on Saturday (April 24), with several startling revelations in the 'diamond-studded list', said Gokhale.

The RBI said that this amount (Rs 68,607-crore) comprising outstanding and the amounts technically/prudentially Written Off, till September 30, 2019.

"The apex bank also declined to provide the relevant information on overseas borrowers citing a Supreme Court judgement of December 16, 2015," Gokhale told IANS.

Topping the list is Choksi's scam-hit company, Gitanjali Gems Limited which owed Rs.5,492 crore, besides other group companies, Gili India Ltd. and Nakshatra Brands Ltd. which had taken loans of Rs 1,447 crore and Rs 1,109 crore, respectively.

Choksi is currently a citizen of Antigua & Barbados Isles, while his nephew and another absconder diamond trader Nirav Modi is in London.

The second in the list is REI Agro Ltd., with an amount of Rs 4,314 crores, and its directors Sandip Jhujhunwala and Sanjay Jhunjhunwala who are already under the scanner of the Enforcement Directorate (ED) since over a year.

The next on the list in the Rs 4,000-crore bracket is absconding diamantaire Jatin Mehta's Winsome Diamonds & Jewellery owing Rs 4,076 crore and which is being probed by the Central Bureau of Investigation for various bank frands.

In the Rs 2,000-crore category, there is the Kanpur-based writing instruments giant, Rotomac Global Pvt. Ltd., part of the famed Kothari group, which owed Rs 2,850 crore.

The others in this category include: Kudos Chemie, Punjab (Rs.2,326 crore), Baba Ramdev and Balkrishna's group company Ruchi Soya Industries Ltd., Indore (Rs.2,212 crore), and Zoom Developers Pvt. Ltd., Gwalior (Rs.2,012 crore).

There are 18 companies in the Rs.1K-segment with some prominent names like Harish R. Mehta's Ahmedabad-based Forever Precious Jewellery & Diamonds Pvt. Ltd. (Rs.,1962 crore), and absconder liquor baron Vijay Mallya's defunct Kingfisher Airlines Ltd. (Rs 1,943 crore).

Another 25 companies fall in the sub-1K-crore category with outstandings ranging from Rs 605 crore to Rs 984 crore, either individually or as group companies.

Six among the 50 Top Wilful Defaulters are connected with the glittering diamond and/or gold jewellery industries.

"A majority of them have defaulted prominent nationalist banks over the past several years and many of them are either absconding or facing action by various probe agencies and some are under litigation," Gokhale said.

No industry is sacrosanct as the top 50 willful defaulters are spread across various sectors of the economy including IT, infrastructure, power, gold-diamond jewellery, pharma, etc.

 
  

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Comment on this article

  • VBReddy, Kurnool

    Wed, Apr 29 2020

    Modiji had got lot of love towards poor Indians. Hence hjs Govt., had efficiently helped them to the extent of Rs 68000 crores. Hats off to him for not concealing his love towards "POOR INDIANS". Hey Ram! Save India!!

    DisAgree Agree [1] Reply Report Abuse

  • Avanish rajesh singh, Valsad

    Wed, Apr 29 2020

    20000

    DisAgree Agree Reply Report Abuse

  • Stephen, Karnataka hubli

    Wed, Apr 29 2020

    Hello
    I had taken home loan in 2012 I had paid upto 2016
    From 2017 I could not pay my bank loan
    Bcoz of business loss after one year some how I paid one lakh

    But bank didn't took from my account they kept suspense


    This March 2020 bank put a sarfasai notice


    And then they sent auction notice

    I don't know wat to do in this lock down period

    Someone please help me in this problem

    Thank you

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Apr 28 2020

    Why can't RBI write off loans from our Poor Farmers ...

    DisAgree [2] Agree [4] Reply Report Abuse

  • smr, Karkala

    Mon, Apr 27 2020

    Here is the list of RBI transfer of surplus reserve to PM Modi government ;
    In the year 2015-16 Rs 65,876 crore
    In the year 2016-17 Rs 30,659 crore( Year of demonetisation)
    In the year 2018-19 Rs 1.76 lakh crore.

    Both absconding diamantaire Jatin Mehta's Winsome Diamonds & Jewellery and Nirav Modi diamantaires are linked, by marriage, to some of India’s most wealthiest and influential business families. Mehta is a close relative of the Adani family – his son Suraj, is married to Krupa, Gautam Adani’s niece. Modi’s brother (Neeshal), on the other hand, is married to the niece (Isheta) of Reliance’s Mukesh Ambani.

    Banks operating in India have written off bad loans worth Rs 660 thousand crore since 2014, as per RBI data. According to RBI’s annual report for 2018-19, the amount sunk in March 2013 due to bank frauds was Rs. 10.2 thousand crore, which rose to a shocking Rs 71.5 thousand crore in March 2018.

    While 'Fakir' has new Gotala scam of 'PM Cares' asking every state employee donate one day salary till May 2021 without CAG auditing, the RBI writes off 'willful defaulters' merging banks one after the other and transfers surplus reserve to shortfall in the budget deficit.

    Now with this money the BJP can even rule India for 140 years buying an MLA and MP of the opposition party. While Adani and Ambani who has the remote control of the government can switch channels so that their marital arrangement remain unscathed.

    Network of clique under the watchful eyes of 'Chowkidar' getting looted in day time and nation coffers has no money for it unemployed citizens, health care system,public distribution system and so on.

    Jai Hind

    DisAgree Agree [38] Reply Report Abuse

  • Deshbhakht, Mangalore

    Mon, Apr 27 2020

    How many of you remember, Anna Hazare was on Ram Leela Maidan and Baba Ramdev joined him in the movement about bringing back black money ? At one such time, Modiji came on the dais and spent some time with the activists because his motto too was against black money. Before leaving, Modiji moved closer to Baba Ramdev and whispered a few words in Baba Ramdev's ears.

    Scene changes and Baba Ramdev's lips sealed. He did not utter one word after that and in time he left the dais, never to return. What may Modiji have said to Baba Ramdev ? 'Kyon waqt zaaya ker rahe ho ? Bolo - kyaa chahiye'. Baba Ramdev returns his associate Balakrishna and both sit to decide what they will ask. Land to build more herbal centers ? Finance to enlarge the empire ?

    Well, we see it now. He got both. He got a bankrupt company with default loan of 3200, for just over a crore. How ? He paid 1078 crores to the lending bank and asked the remaining be waived off. Additionally , he got several hundreds of hectares of land at a pittance cost.

    This is how much has come in print. God know how much more is there. This is our India, the India that the current govt wanted to be from 1947. That is why, Modiji kept asking '70 saalon se kiya kyaa ?'

    Jai Hiind !

    DisAgree [1] Agree [38] Reply Report Abuse

  • Rajesh, Mangalore

    Mon, Apr 27 2020

    Two things. A loan write off is not a Loan waiver. An NPA which becomes a Loss asset is written off fully. A 100% provision on an asset makes the asset Value Zero. The issue is wether the Banks will fight in the courts. If the Banks do not fight the recovery then we can definitely blame the government.

    DisAgree [7] Agree [15] Reply Report Abuse

  • Sunil K, Mangalore

    Tue, Apr 28 2020

    A 100% PROVISION still keeps the loan account on the books of the bank.
    A WRITE-OFF (obviously for the full amount) REMOVES the loan account and details off the books of the bank.

    For simple understanding - if your mobile stops working you can take it for repairs or sell it off. However instead in a fit of anger if you were to smash it to the ground getting broken into a thousand pieces, then your mobile is a write off - you lose your mobile and money. (just an example ; no harm intended to any mobiles or components thereof)

    DisAgree [2] Agree [5] Reply Report Abuse

  • Honnappa, Byadagi

    Mon, Apr 27 2020

    Cat is out of bag. Now you know which government writes off rich people loans.

    DisAgree Agree [42] Reply Report Abuse

  • Ramesh, Udupi

    Mon, Apr 27 2020

    Nation wants to know why this news is not on national TV? This is biggest scam of the century. Thank you Rahul Gandhi for bringing this issue in parliament.

    DisAgree Agree [53] Reply Report Abuse

  • Ramesh, Udupi

    Mon, Apr 27 2020

    Now whole India knows why the central government doesn't have money to feed the poor and migrants. What a national shame.

    DisAgree Agree [42] Reply Report Abuse

  • Bhavya Baliga, Udupi / San Francisco

    Mon, Apr 27 2020

    The same old sarcastic criticism!!
    These people should know that WRITING OFF is nullifying the defaulter's account from the profits of the Bank.
    The accounts are, otherwise, very much alive, more focussed and vigprousely followed up for recovery by a specialised team/department in the Bank.
    The legal recourse continues in a dedicated special Court, all the related agencies are involved to realize the assets.
    Writing off MEANS hastened recovery efforts and the defaulters are never spared to the last penny.
    So, let the agitated minds rest at peace.

    DisAgree [47] Agree [8] Reply Report Abuse

  • Veer, Nagpur

    Mon, Apr 27 2020

    Then why the govt was mum in the parliament without clarifying it to the opposition????. These decision can't be done unanimously and unilaterally without taking opposition into confidence. This is unconstitutional.

    DisAgree [2] Agree [41] Reply Report Abuse

  • Karthik, Konaje/Navi Mumbai

    Mon, Apr 27 2020

    Read the article again and answer two simple questions before attempting to defend the indefensible
    1. Why FM refused to answer the question during budget session.
    2. It's impossible for an Indian to get citizenship of another country unless one obtains clearance from Indian government. How Mehul Bhai obtained that clearance.

    DisAgree [3] Agree [46] Reply Report Abuse

  • Deshbhakht, Mangalore

    Mon, Apr 27 2020

    Bhavya,

    How do banks make profits ? Obviously through higher lending rates. Now, why didn't they do profit from these defaulters ? Why didn't they go after those rich borrowers to pay EMIs ? Tell me, will a middle class or a poor borrower be let go so easily ? Their assurance property will be ceased if jut one instalment will be defaulted.

    The other way of making profit is throgy service charges and of-course, charging the account holder for not maintaining min balance. Do you know how many poor holders of Jan Dhan accounts got penalized upon gong below min balance ? Who enticed them to make the accounts in the first place ? None other than their savior, who gave them dreams of 15 L.

    Wah, Modiji, Wah !

    DisAgree [1] Agree [33] Reply Report Abuse

  • Rudolf Rodrigues, Mumbai

    Tue, Apr 28 2020

    These defaulting crooks have planned their jhumlas (dayight loots) in such a way that nobody can touch them or the looted booty from their hideouts!!

    These crooks, especially those listed in the stock markets) have made innocent investors fully naked & escaped without a single hurdle; still lots of big jhumlas going on in the stock markets with none of the regulators bothering to act upon!!
    Jai Hind!!

    DisAgree [1] Agree [5] Reply Report Abuse

  • Edwarrd Pinto, Mangalore

    Mon, Apr 27 2020

    Poor are dying and banks are running behind to get money from them . Rich are running away and their loan is written off. what shame.

    DisAgree [2] Agree [36] Reply Report Abuse

  • James, Bendur

    Mon, Apr 27 2020

    Farmers are committing suicides in India and defaulters are celebrating overseas.

    DisAgree [1] Agree [39] Reply Report Abuse

  • geoffrey, hat hill

    Mon, Apr 27 2020

    They have chosen right time to make this revelation, now that the entire nation is panicked on virus! All the default amount and economic repercussions thereof will be ascribed to pandemic!

    DisAgree [2] Agree [32] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Apr 27 2020

    I wonder if RBI is Gambling ...

    DisAgree [3] Agree [36] Reply Report Abuse

  • Sachin, Bangalore/Mangalore

    Mon, Apr 27 2020

    Ruchi Soya owners defaulted the banks, the company was bankrupt and recently the company was brought by Pathanjali group of Baba Ramdev.

    DisAgree [7] Agree [31] Reply Report Abuse

  • Deshbhakht, Mangalore

    Mon, Apr 27 2020

    @Sachin, Bangalore
    Please note :
    'New Delhi: Baba Ramdev-led Patanjali Ayurved on Friday said it has already tied up loan worth ₹3,200 crore from a consortium of lenders led by State Bank of India to fund its acquisition of Ruchi Soya through insolvency process.Nov 29, 2019'

    What we read today is the RTI filed by the gentleman, after the FM did not respond to RG's query to know about loan defaulters in the budget session ON FEB. 16, 2020. You can note that from the excerpt above that Pathanjali applied for a loan to buy the said bankrupt company, the news goes back to Nov. 29, 2019. To be included in the list of loan defaulters, don't you think the loan was granted (3,200 Crores) and at the same time waived off (2,212 Crores) ? How much did Pathanjali repay, and how much did it plead be waived off ? If Pathanjali did not have the funds to buy a bankrupt company, why did it attempt it at all ? Well, if NiMo/Choksey can have the blessing of taking loans and not repaying, why can't me ? Right ?

    This is how I understand. Please explain if there is any other way of describing it.

    DisAgree [3] Agree [30] Reply Report Abuse

  • Veer, Nagpur

    Mon, Apr 27 2020

    On what basis govt is waiving off loan of wilful defaulters???. Don't they have assets back in India???. Why is govt not allowing to come back as they are willing to come back and pay back all dues etc etc???. Why is govt not answering queries from opposition in the parliament???. Something very fishy!?!?!?!?!?....

    DisAgree [2] Agree [37] Reply Report Abuse

  • Alwin, Mangalore

    Mon, Apr 27 2020

    When these people escaped from the country and when was their loan written off?
    When they acquired citizenship of the country now stay?whom they are related or closely associated? Whom they have given donations etc?

    DisAgree [1] Agree [29] Reply Report Abuse

  • Deshbhakht, Mangalore

    Mon, Apr 27 2020

    "Baba Ramdev and Balkrishna's group company Ruchi Soya Industries Ltd., Indore (Rs.2,212 crore) ????"

    Wasn't this clown jumping high enough, in support of 'bringing back money' ??? What is the worth of Pathanjali ? By the way, how many hectares of government and did Pathanjali buy @70% discount rate ?

    Why can't the assets of all these defaulters be confiscated/auctioned and the loan amount claimed ? Why declare them defaulters and write the loan off ?

    Where are our loyalist supporters on DW, of buying Baba Ramdev's products ? Look people, this is what your favourite son of Bharat Mata has done. Who is a traitor ? The Gandhi family - right ? The man who can stand high in the Parliament and question the BJP govt but the Finance Min had no audacity to answer. This is your majority elected government !

    Vote for 'the Governance with a difference' again ! Please do !

    DisAgree [5] Agree [51] Reply Report Abuse


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Title: RBI writes off over Rs 68K cr. loans, Choksi among 50 top wilful defaulters: RTI



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