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In RTI Reply, RBI Finally Reveals List of Wilful Defaulters; RBI Supersedes DHFL Board

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 21, 2019 11:09 AM 2 min read

Replying to RTI, RBI finally reveals list of wilful defaulters. RBI supersedes DHFL Board.



Replying to RTI, RBI finally reveals list of wilful defaulters.

Right to Revalation: In response to an RTI filed by The Wire, the RBI has disclosed a list of India's wilful defaulters. As per the list, total funded advances outstanding to the 30 companies named, in addition to the amount the banks have written off so far, adds up to over INR50,000cr. The list contains many well-known names, including Gitanjali Gems, Rotomac Global, Ruchi Soya IndustriesZoom Developers, Deccan Chronicle Holdings, Winsome Diamonds, REI Agro, Siddhi Vinayak Logistics and Kudos Chemie.


RTIs seeking information of wilful defaulters first reached the Central Information Commission (CIC) in 2011. The CIC directed the RBI to reply to these petitions, but the Central Bank argued that its "fiduaciary relationship" with banks ties its hands from disclosing information on defaulters. The matter soon went to the Delhi High Court and then the Supreme Court, which in 2015 directed the RBI to answer the RTI applicants. The Wire


RBI supersedes DHFL Board.

Superseded: Due to payment defaults and governance concerns, the RBI has superseded the Board of Dewan Housing Finance (DHFL).


"The Reserve Bank...intends to shortly initiate the process of resolution of the company under the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 and would also apply to the NCLT for appointing the Administrator as the Insolvency Resolution Professional," RBI said. Moneycontrol


You can read the RBI's press release on the same here.


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