CBI probes willful loan defaulters | mumbai | Hindustan Times
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CBI probes willful loan defaulters

The Central Bureau of Investigation (CBI), Mumbai has begun a preliminary investigation into loan defaults by over 2,200 companies. Each of the companies failed to repay the borrowed amount of Rs1 crore or more from various banks.

mumbai Updated: Aug 22, 2011 01:00 IST
Manish Pachouly

The Central Bureau of Investigation (CBI), Mumbai has begun a preliminary investigation into loan defaults by over 2,200 companies. Each of the companies failed to repay the borrowed amount of Rs1 crore or more from various banks.

The CBI will also investigate the role of bank officers to see if the companies were deliberately allowed to default on repayment of the loan.

The investigation began after a Right to Information (RTI) activist, Manoranjan Roy, wrote to the President of India about companies deliberately not repaying the loan amount in collusion with bank officers. He had marked the copies to other government agencies including the CBI in New Delhi.

Roy got information about the number of loan defaulters from the Reserve Bank of India (RBI), following his application under RTI.

HT wrote, in its February 27 edition, about how a large amount of loans have not been repaid in the last 15 years. Following direction by its head office in New Delhi, the Bank Securities and Fraud Cell (BS&FC) branch of the CBI began the investigation on Tuesday.

To begin with, the CBI recorded Roy’s statement to find out further details on bank loan defaults. The CBI will first find out the names and details of the 2,252 defaulters.

“We will find out how many of them have deliberately not repaid the loan amount,” a CBI official said requesting anonymity.

CBI sources said that such defaulters deliberately show losses to avoid repaying the loan. “After this, we will investigate the role of concerned bank officials – whether they were hand in gloves with the companies,” the official said.

Roy’s complaint to the President said according to the country’s economic policy, there are many checklists and conditions formulated by the government before sanctioning business proposals and banking finance proposals. “Inspite of the said checklist, why are so many companies turning defaulters?” Roy asked in the complaint.