Action being taken on willful defaulters: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has said that action is being taken on wilful defaulters. While answering a question in the parliament, Sitharaman said that the banks are taking steps to get the money back from the defaulters and about Rs 33,801 crore has been recovered as of March 31, 2023.

As of December 1, 2023, assets amounting to Rs 15,186.64 crores under the PMLA have been confiscated by the ED out of which Rs 15,183.77 crores have been restituted to the Public Sector Banks.

Punjab & Maharashtra Cooperative Bank has recovered Rs 104.02 crores with active cooperation and support from agencies while assets amounting to Rs 692.89 crores have been confiscated under the provisions of the Fugitive Economic Offenders Act, 2018.

Actions taken against wilful defaulters

Finance Minister Nirmala Sitharaman also pointed out that legal suits were filed for recovery against 13,978 loan accounts and action under the SARFAESI Act has been initiated in 11,483 cases. FIR has been filed in 5,674 cases. All this, as of 31st March 2023

As of 31st March 2023,

- Legal suits were filed for recovery against 13,978 loan accounts.
- Action under the SARFAESI Act has been initiated in 11,483 cases.
- FIRs have been filed in 5,674 cases.
- An aggregate amount of Rs 33,801 crores has been recovered.

Specific… pic.twitter.com/aZ5G6UAIwi

— Nirmala Sitharaman Office (@nsitharamanoffc) December 5, 2023

Phone Banking

Finance Minister also alleged that the Phone Banking system introduced during the UPA rule had an adverse impact on the Non performing asset class.

"Phone Banking was at that time when people would call the banks & say 'so & so will come to seek a loan from your bank, please grant it', meaning that there's no need to look at their eligibility, etc & that the loan must be granted", Sitharaman said.

She went on to say that this system with its political interference, spoilt the banks sending them into loss-making situation.

'Phone Banking' was at that time when people would call the banks & say 'so & so will come to seek a loan from your bank, please grant it', meaning that there's no need to look at their eligibility, etc & that the loan must be granted.

The heart of the problem was during the 10… pic.twitter.com/NeA21VVV0A

— Nirmala Sitharaman Office (@nsitharamanoffc) December 5, 2023