Look who is on UCO Bank’s list of wilful defaulters
UCO Bank’s list contains the names of a total of 665 defaulters and the amount outstanding that they owe to the bank
June 17, 2019
A list of wilful defaulters released by state-owned UCO Bank as part of the name and shame exercise includes Yasovardhan Birla who owes a payment of Rs 67.55 crore to the bank. The loan was given to Birla Surya Ltd by a consortium of banks that included the State Bank of India (SBI), Punjab National Bank and United Bank of India, apart from UCO Bank.
According to the information available on the bank’s website, the bank has filed a suit to recover the amount from the defaulter. It is interesting to note that the action against Yash Birla comes from a bank that was founded by his great grand uncle, Ghanshyam Das Birla in 1943.
UCO Bank sanctioned credit limit of Rs 100 crore
The bank’s corporate branch at Nariman Point, Mumbai, had sanctioned a credit limit of Rs 100 crore to Birla Surya Ltd for fund-based facilities, for the purpose of manufacturing multi-crystalline solar photovoltaic cells.
“Due to non-repayment of dues to the bank, the account was declared non-performing asset (NPA) on June 3, 2013. The borrower has not repaid the dues owed to the bank despite several notices... The borrower company and its directors, promoters, guarantors were declared as wilful defaulters by the bank and their name reported to the credit information companies for public information,” the notice said.
What happens after an entity is declared a wilful defaulter?
After an entity is deemed a wilful defaulter, as per the Reserve bank of India’s (RBI) guidelines, the borrower is not sanctioned any additional facilities by banks or financial institutions and is debarred from floating new ventures for five years. Additionally, lenders may initiate criminal proceedings against the company and its directors.
The list of defaulters
UCO Bank’s list contains the names of a total of 665 defaulters and the amount outstanding that they owe to the bank. Other prominent names on the list include Zoom Developers with an outstanding loan amount of Rs 309.50 crore, First Leasing Company of India with Rs 142.94 crore, Moser Baer India with Rs 122.15 crore and Surya Vinayak Industries with NPA of Rs 107.81 crore.