Coming down heavily on banks for preferring to give loans to bigwigs, the Supreme Court today said, “It is unfortunate that banks recklessly give loans to big industrialists, and declare them insolvent when they don’t repay. On the other hand, poor farmers are harassed for defaulting small amounts even.”
The bench of Chief Justice of India and Justice Banumathi was hearing the CPIL filed against Housing and Urban Development Corporation (HUDCO) and few other banks for advancing bad loans to some companies.
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The Supreme Court also asked the Reserve Bank of India to make names of defaulters of Rs 500 crores above loan amount, public, which was declined by the bank, citing confidentiality clause under the RBI Act and Credit Information Companies Regulations Act.
The court issued notice to finance ministry, and Indian Banks Association, and listed the matter for April 26 to formulate issues.