Accordingly Nirmala Sitharaman, on Monday, replying to the first set of questions in Lok Sabha as the new finance minister informed that the total number of willful defaulters at the end of Financial Year 2019 (FY19) stood at 8,582 compared to 5,349 at the end of Financial Year 2015 (FY15).
The written answer to a question in the Lower House by Sitharaman indicates that the number of willful defaulters over a period of five years have increased by 60%. According to the ministry, a willful defaulter is defined as a person who has the resources to repay the loan, but does not do so intentionally, and deploys the money for purposes other than intended.
The ministry's reply stated that under the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI ACT, 2002), action has been initiated in 6,251 cases involving secured assets. Public sector banks till March 31, 2019, had filed suits for recovery in 8,121 cases and as per RBI instructions, FIRs have been registered in 2,915 cases. The House was informed that Rs 7,600 crore has been recovered from these defaulters. Finance minister Nirmala Sitharaman informed that as a punitive action, willful defaulters are no more sanctioned additional facilities by banks or financial institutions and their businesses are barred from floating new ventures for five years.
