SC to RBI on bad loans: You are the regulator, you must act as a watchdog
April 12, 2016 14:11
The Supreme Court asked the Reserve Bank of India how people were running away from the country in spite of defaulting on loans amounting to crores of rupees. You are the regulator and you must act as a watchdog, the court told the RBI.
The court's observations come nearly two weeks after the RBI submitted a list of defaulters owing Rs 500 crore or more to public sector banks.
While submitting the list, the RBI had said it was "extremely necessary' to keep these names confidential due to their "fiduciary relationship'.
RBI's affidavit was filed in response to a reply sought by a bench led by Chief Justice T S Thakur, which had last month taken suo motu cognizance of The Indian Express report that Rs 1.14 lakh crore of bad loans had been written off by state-owned banks between 2013 and 2015.
The bench had ordered the RBI to share with it names of all defaulters who owe over Rs 500 crore and continue to lead a "lavish lifestyle'.
The court's observations come nearly two weeks after the RBI submitted a list of defaulters owing Rs 500 crore or more to public sector banks.
While submitting the list, the RBI had said it was "extremely necessary' to keep these names confidential due to their "fiduciary relationship'.
RBI's affidavit was filed in response to a reply sought by a bench led by Chief Justice T S Thakur, which had last month taken suo motu cognizance of The Indian Express report that Rs 1.14 lakh crore of bad loans had been written off by state-owned banks between 2013 and 2015.
The bench had ordered the RBI to share with it names of all defaulters who owe over Rs 500 crore and continue to lead a "lavish lifestyle'.
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