13 June, 2021

Some Borrowed, Some Stolen

The RBI takes the CVC’s cue and puts out its own rogues’ gallery-of corporate defaulters

Some Borrowed, Some Stolen
outlookindia.com
-0001-11-30T00:00:00+05:53

Now, and at long last, it’s sunny side down for liberalisation. Top Indian corporates, who, for many years, have been crying themselves hoarse for more reform and liberal practices, could finally see their day of reckoning dawn. Many of them, it turns out, have not paid up their loans borrowed from Indian banks and key financial institutions running into thousands of crores-approximately half of the country’s fiscal deficit. And the Reserve Bank of India (RBI), the apex banking institution, is not taking too kindly to this defalcation.

Says a bank official: "Various industrialist associations like FICCI, ASSOCHAM and CEI have for long deftly made their cases but have been rather quiet on the business of returning loans. It is time their bluff is called." Last fortnight, the RBI, in an unprecedented move, put out a long list of defaulters which almost reads like the who’s who of Indian industry-JK Synthetics, East West Travel and Trade Links, Harshad Mehta, Mackinnon Mackenzies and Co Ltd, Mafatlal Engineering India Ltd, Bengal Ferroys...

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