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RBI disclosed major wilful defaulter details under RTI act 2005

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On November 21, 2019 The Reserve Bank of India (RBI) has disclosed list of 30 major wilful defaulters of India. The list was disclosed by RBI in response to Right to Information(RTI) application of the RTI act 2005, filed by Indian news website ‘The Wire’ in May 2019.RTI&RBIData:

  • 3 companies of fugitive diamond manufacturer & businessman Mehul Choksi, were among the 30 major wilful defaulters.
  • Company outstandings: These 30 companies added up to over Rs 50,000 crores of total outstanding advances (amounts drawn down under the loan but not repaid).
  • Defaulter companies: Some of the companies that has been added to the list include Gitanjali Gems, Rotomac Global, Zoom Developers, Deccan Chronicle Holdings, Winsome Diamonds, REI Agro, Siddhi Vinayak Logistics and Kudos Chemie.
  • The list of the companies has been sourced by RBI from Central Repository of Information on Large Credits (CRILC)which is a centralised banking database.

Key Point:

i.It is also to be noted that the report has been released 4 years after it was directed by the Supreme Court(SC). The RBI previously ignored RTI complaints for over 10 years stating the fact that it would be against the interest of the country and also that ‘fiduciary relationship’ of the banks disallows it from doing so.

ii.Despite the fact that RBI was reluctant to release the data, many individual banks released the data on wilful defaulters in form of suits(case) filed for recovery of their dues. These data over the years was collated(collected) by the TransUnion Cibil ltd which is a credit information company operating in India.

iii.As of December 2018, over 11,000 companies had willfully defaulted on amounts worth over Rs 1.61 lakh crore, according to TransUnion Cibil data.

About RTI act:
RTI- Right to Information Act 2005 mandates timely response to citizen requests for government information.
Fact- Aruna Roy is the mastermind behind the formation of RTI Act 2005.
In force- 12 October 2005.

About Fiduciary relationship:
It is a relationship in which one party places special trust, confidence, and reliance in and is influenced by another who has a fiduciary duty to act for the benefit of the party

About TransUnion CIBIL:
CIBIL former name: Credit Information Bureau (India) Limited.
Founded- August 2000.
Headquarters- Mumbai.