The Supreme court today sought the Union Finance Ministry and Indian Banks Association's response on the defaulted loans issue within two weeks. Hearing on a PIL, the apex court bench headed by Chief Justice of India T S Thakur asked Reserve Bank why the total bad debts amount can't be made public even if the names of defaulters may not be disclosed. However, the RBI told the court that such a disclosure may have an adverse impact on the economy. <br/><br/>The petitioner NGO Centre for Public Interest Litigation (CPIL) had opposed the RBI stance of submitting details of bad loans in sealed cover saying it is against a recent Supreme court judgement. RBI had on March 31 sought the confidentiality clause while submitting the details on Non-Performing Assets (NPAs) before the apex court. <br/> <br/>After studying the list provided by RBI, the apex court bench today said it amounts to quite a substantial amount and makes a case. Reminding RBI's role as a regulator, the bench asked it to act as a watchdog and not let people to run away after defaulting in repaying loans worth crores of rupees . The court has now posted the matter for further hearing on April 26.
News On AIR | April 12, 2016 8:40 PM
SC asks FinMin, IBA to respond to loan default case in two weeks