Supreme Court asks RBI to submit list of big defaulters
RBI has been asked by the apex court to submit list of big defaulters or whose loans have been restructured under the CDR scheme
 
The Supreme court on Wednesday asked the Reserve Bank of India to furnish a list of the companies which are in default of loans in excess of Rs500 crore or whose loans have been restructured under corporate debts restructuring (CDR) scheme by banks and financial institutions.
 
While asking the RBI to file an affidavit, the apex court bench headed by Chief Justice GS Thakur directed that the list be furnished to it in a sealed cover that would include details of defaults of over past five years. The Court said this as one of the counsels told the court about commercial confidentiality of the companies.
 
During FY2013 to FY2015, 29 public sector banks (PSBs) wrote off a total of Rs1.14 lakh crore of bad debts. RBI had disclosed in a reply under Right to Information (RTI) Act that the bad debts shot up over three times to Rs52,542 crore as on March 2015 from Rs15,551 crore on March 2012. State Bank of Saurashtra and State Bank of Indore have shown zero bad debts over the past five years.
 
The Court order came in the course of the hearing of a public interest litigation pointing to loans given by Housing and Urban Development Corporation (HUDCO) in 2003 to some of the companies with questionable track records.
 
According to a newspaper report, during 2004 to 2012, the bad debt of PSBs grew at 4%, which rose to about 60% during FY2013 to FY2015. The bad debts written off in the financial year ending March 2015 make up 85% of such loans since 2013, the report says.
 
Earlier in December 2015, the Supreme Court, in a landmark judgement, has told the RBI that the banking regulator cannot withhold information citing 'fiduciary relations' under the Right to Information (RTI) Act. Hearing a set of transferred cases, a Division Bench of Justice MY Eqbal and Justice C Nagappan said, "From the past we have also come across financial institutions which have tried to defraud the public. These acts are neither in the best interests of the Country nor in the interests of citizens. To our surprise, the RBI as a Watch Dog should have been more dedicated towards disclosing information to the general public under the Right to Information Act. We also understand that the RBI cannot be put in a fix, by making it accountable to every action taken by it. However, in the instant case the RBI is accountable and as such it has to provide information to the information seekers under Section 10(1) of the RTI Act."
 
In most of the transferred cases, Shailesh Gandhi, former Central Information Commissioner, while directing the RBI to provide information sought by applicants, has rejected the central bank's contention of 'fiduciary relation' for denying information.
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    COMMENTS

    MG Warrier

    4 years ago

    Where public funds including bank deposits get stuck in bad loans, not only judiciary and regulators, the owners of the resources have a right to know where and why things are going wrong. Here, if legal constraints emanating from bank-customer relationship come in the way, it is time to think in terms of removing legal hurdles through appropriate legislation.

    R Balakrishnan

    4 years ago

    Banks print names and photos of small loan defaulters. Defaulter information should be pubic data. What about the bulk who are defaulters below Rs.500 cr?

    REPLY

    Vivek Naik

    In Reply to R Balakrishnan 4 years ago

    absolutely correct :)

    CBI to retain documents seized during Delhi secretariat raid: HC
    New Delhi : The Delhi High Court on Wednesday set aside the order of the trial court directing the CBI to release the documents seized during the raid at the office of Rajendra Kumar, principal secretary to Chief Minister Arvind Kejriwal, on December 15, 2015.
     
    Justice P.S. Teji said that the Central Bureau of Investigation (CBI) will retain the documents seized by it during the raid. "Claim of the CBI to retain the documents justified," it added.
     
    The court's order came on a CBI plea challenging a trial court order directing the probe agency to release the documents.
     
    The Aam Aadmi Party government had told the court that the CBI was trying to give a "political colour" to the raid and that the agency acted under "political pressure" to indiscriminately seize the documents.
     
    The CBI, however, said the documents seized from the office of Rajendra Kumar "prima facie reflect criminal conspiracy and criminal misconduct and abuse of official position by the accused people".
     
    Defending the seizure of documents from the office of Rajendra Kumar, located next to the chief minister's office in the Delhi Secretariat, the agency had said the proper procedure for the search was followed.
     
    The decision to raid was not influenced by any political party and "the colour given by the AAP government is unwarranted", it added.
     
    The CBI said it raided the Delhi Secretariat while investigating corruption charges against Rajendra Kumar.
     
    Kejriwal claimed his office was raided too, and linked it to a probe he had ordered against Union Finance Minister Arun Jaitley on issues related to alleged corruption in the Delhi and District Cricket Association (DDCA) which Jaitley had led earlier.
     
    The CBI denied searching Kejriwal's office.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Subramani P K

    4 years ago

    Good judgement. All corrupt crooks should be fixed & brought before law and suitably punished. The politicians abetting to corruption should also be booked without fear or favour. And people like AK who duped the people in the pretext of anti corruption crusade should not be spared.

    SEBI holds guilty CMD, CEO of Palred Technologies for insider trading
    Top brass of Hyderabad-based Palred Technologies were found by SEBI to have used unpublished price sensitive information to unlawful gains of over Rs2.2 crore
     
    Market regulator Securities and Exchange Board of India (SEBI) has held guilty chairman and managing director (CMD) and chief executive (CEO) of Palred Technologies Ltd (PTL), a micro-cap which runs LatestOne.com, an online mobile accessories store. 
     
    According to SEBI, Palred's CMD Palem Srikanth Reddy and CEO Ameen Khwaja were part of a cartel of 15 people termed as 'insiders' and were in possession of unpublished price sensitive information (UPSI) on the basis of which they traded in the scrip of PTL. 
     
    In an order, Prashant Saran, whole time member of SEBI said, "...I, in exercise of the powers conferred upon me by virtue of Section 19 read with Sections 11(1), 11(4)(d) and 11(B) of the SEBI Act, 1992, hereby order to impound the alleged unlawful gains of a sum of Rs2.22 crore (alleged gain of Rs1.66 crore plus interest of Rs56.55 lakh from the date of buy transactions to 31 January 2016), jointly and severally from the (15) persons tabulated in the paragraph above. If the funds are found to be insufficient to meet the figure of unlawful gains, as directed above, then the securities lying in the demat account of these persons shall be frozen to the extent of the remaining value.
     
    Besides Palem Srikanth Reddy and CEO Ameen Khwaja, SEBI has named Noorjahan A Khwaja, Ashik Ali Khwaja, Rozina Hirani Khwaja, Shefali Ameen Khwaja, Shahid Khwaja, Pirani Amyn Abdul Aziz, Mohan Krishna Reddy Aryabumi, Karna Ramanjula Reddy, Umashankar S, Raja Lakshmi Srivaiguntam, Kukati Parvathi, Prakash Lohia and P Soujanya Reddy in the order.
     
    SEBI investigation revealed that Palem Srikanth Reddy, Mohan Krishna Reddy and P Soujanya Reddy (promoter of PTL and mother of Palem Srikanth Reddy) were the persons privy to the ‘slump sale of software solutions business to Kewill group’. Palem Srikanth Reddy was also privy to the information about the declaration of dividend. “...Palem Srikanth Reddy had communicated or counselled, directly or indirectly the UPSI to one Ameen Khwaja, his relative Kukati Parvathy (aunt of Palem Srikanth Reddy) and others (hereinafter collectively referred to as the ‘suspected entities’). Ameen Khwaja appears to have not traded in the scrip of PTL during the period of investigation. However, his immediate family members namely  Noorjahan A Khwaja, Ashik Ali Khwaja, Rozina Hirani Khwaja, Shefali Ameen Khwaja and Shahid Khwaja (hereinafter collectively referred to as ‘Khwaja group’) were found to be trading in the scrip of PTL during the UPSI period," SEBI said.
     
    The market regulator also found that Pirani Amyn Abdul Aziz was connected to Ameen Khwaja through mutual friends on ‘Facebook’. "He (Pirani Amyn Abdul Aziz) was employed with Deloitte Tax Services India Pvt Ltd (a group company of Deloitte Touche Tohmatsu India Pvt Limited, which had conducted the due diligence of PTL during the
    slump sale). During the course of investigation, Pirani Amyn Abdul Aziz failed to reply to the specific details, as sought by SEBI," it said.
     
    Earlier, on 9 December 2013, the Company changed its name from Four Soft Ltd to PTL.
     
    Palred Technologies closed Tuesday 7.5% down at Rs63.9 on the BSE, while the benchmark Sensex ended the day 1.1% down at 24,020.
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    COMMENTS

    Nitin A. Khandkar

    4 years ago

    Someone had recommended the stock to me three months ago. I was skeptical of the business model and the company's e-commerce venture. Seems the company made a placement to top investors since then. This story only highlights the need to carry out thorough due diligence on small caps.

    Arunkumar A Vijayan

    4 years ago

    Why are you bringing in Mr Porinju into the story??
    Please explain?

    ch prakash

    4 years ago

    I could not understand the connection with Mr.Porinju Veliyath with the story.

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