UCO Bank declares Yash Birla wilful defaulter, puts notice with photo – The Financial Express
In a master circular on July 1, 2015, the Reserve Bank of India (RBI) had said no additional facilities should be granted by any bank or financial institution to listed wilful defaulters.
Kolkata-based UCO Bank on Sunday declared Yashovardhan Birla, chairman of the Yash Birla group, a wilful defaulter after Birla Surya had defaulted on loans of Rs 67.65 crore extended by the bank. UCO Bank put out a public notice with Birla’s photograph.
According to the notice, Birla Surya was sanctioned a credit limit of Rs 100 crore of fund-based facilities for the purpose of manufacturing of multi-crystalline solar photovoltaic cells from UCO Bank’s flagship corporate branch at the Mafatlal Centre, Nariman Point, Mumbai. The present balance outstanding is Rs 67.65 crore, in addition to unapplied interest from the date of the account turning into a non-performing asset (NPA).
“Due to non-repayment of dues to the bank, the account was declared NPA on June 3, 2013. The borrower has not repaid the dues owed to the bank despite several notices,” the bank said in the notice, adding, “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.”
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UCO Bank also named as wilful defaulters directors of seven other companies, which have total unpaid dues of Rs 740 crore. These include Mehul Choksi of Gitanjali Gems as well as Manoj Jayaswal and Abhishek Jayaswal of Abhijeet Ferrotech and Kaizen Power.
In a master circular on July 1, 2015, the Reserve Bank of India (RBI) had said no additional facilities should be granted by any bank or financial institution to listed wilful defaulters. In addition, such companies (including their entrepreneurs or promoters) where banks have identified siphoning or diversion of funds, misrepresentation, falsification of accounts and fraudulent transactions should be debarred from institutional finance from the scheduled commercial banks, financial institutions, and NBFCs for floating new ventures for a period of five years from the date of removal of their name from the list of wilful defaulters as published by the RBI or credit information companies.
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Source: Financial Express