Govt. to reveal Names of 12 biggest Bank Loan defaulters & start Bankruptcy proceedings

June,15,2017:

National Company Law Tribunal (NCLT) will accord priority to these cases.

The Finance Ministry has stated that the names of 12 big defaulters identified by RBI for initiation of the bankruptcy proceedings will soon be made public.

RBI had on Tuesday said that  it has identified 12 large loan defaulters who account for the 25 per cent of total NPAs in banking sector and those will be referred to the respective banks for filing of the insolvency proceedings.

Finance Ministry has further added that the NCLT was being strengthened to fast track the bankruptcy proceedings under Insolvency and Bankruptcy Code (IBC).

The defaulters who have been identified by the RBI owes over Rs 5,000 crore to the Banks.

Banking sector has been saddled with the Non-Performing Assets (NPAs) of over Rs 8 lakh crore, of which Rs 6 lakh crore is with the Public Sector Banks (PSBs).

IBC provides for 180 days for completion of the insolvency process which can be extended by another 90 days in the special cases.

For cases under the IBC, NCLT is the adjudicating authority. NCLT was set up on June 1, 2016. It has 10 benches in India.