UCO Bank declares Yashovardhan Birla wilful defaulter after group firm fails to pay Rs 67.65 cr loan
Uco Bank on Sunday put out a public notice with Birla’s photograph declaring Birla a wilful defaulter after Birla Surya did not repay loans to the tune of Rs 67.65 crore
The loan was taken for the purpose of manufacturing multi-crystalline solar photovoltaic cells
The bank said the company had a credit limit of Rs 100 crore, of which Rs 67 crore plus interest was outstanding
The borrower didn't repay the dues despite several notices served by Uco Bank
State-run UCO Bank has reportedly declared Yashovardhan Birla, chairman of the Yash Birla group, a wilful defaulter after one of the firms, Birla Surya, in his group failed to repay Rs 67.65 crore loan given by the bank, said a media report.
The Kolkata-based bank on Sunday put out a public notice with Birla’s photograph declaring him a wilful defaulter after the firm Birla Surya did not repay loans which it took for manufacturing multi-crystalline solar photovoltaic cells, said a report in The Times of India. Birla is the director of the firm.
According to the news report, the bank said the company had a credit limit of Rs 100 crore, of which Rs 67 crore plus interest was outstanding. The loan was classified as a non-performing asset in 2013.
"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,” a report in The Financial Express said.
According to Business Standard, the borrower didn't repay the dues despite several notices served by UCO Bank The bank was founded in 1943 by industrialist GD Birla, the brother of Yashovardhan Birla's great grandfather Rameshwar Das Birla
In April 2017, State Bank of India (SBI) had asked Birla to pay Rs 17.5 crore within 15 days or face legal action, said a report in The Asian Age. The bank had issued a public notice against Birla and former employee PVR Murthy, demanding that the loan amount be paid back. Birla, however, said that he was neither borrower nor guarantor hence, he could not be issued any notice, said the report.
— With PTI inputs
SBI finally tags Vijay Mallya ‘wilful defaulter’, others still dragging feet. We need special courts to fix crony promoters
Till the time an effective judicial platform is set up to handle such cases, even the wilful defaulter tag is nothing more than a child's toy
Finance Minister Nirmala Sitharaman to meet CEOs of PSU banks on Friday, discuss ways to increase credit growth
The meeting assumes significance as it will be the first after the Narendra Modi government returned to power in May this year
Nailing Mallya is even more critical for banks now for two reasons. This can reinstate the confidence in the banking system itself and send a message to other wilful defaulters