SBI declares 10 corporate borrowers, their directors wilful defaulters

State Bank of India (SBI) on Friday declared 10 corporate borrowers, with aggregate outstanding dues worth close to Rs 1,500 crore, and their directors wilful defaulters. The companies are based in Mumbai and Navi Mumbai.

Among these defaulters, the borrower with the highest amount in outstanding dues is Spanco, which owes SBI Rs 347.30 crore. It was followed by Calyx Chemicals & Pharmaceuticals, with outstanding dues of Rs 327.82 crore and Loha Ispaat, which has Rs 287.30 crore of unpaid dues.

The other wilful defaulters named by SBI are Auro Gold Jewellery (Rs 229.05 crore), Excel Metal Processors (Rs 61.26 crore), Macrocosm Infrastructure & Power (Rs 56.73 crore), Metal Link Alloys (Rs 53.79 crore), Resilient Auto (Rs 32.71 crore), Rangara Industries (Rs 29.52 crore) and Global Hi-Tech Industries (Rs 27.81 crore).

“Notice is hereby given to public in general and the Borrower(s)/Guarantor(s) whose names are appearing herein below in particular that the Loan/Credit Facilities availed by the Borrower(s) from the Bank has not been repaid despite repeated notices,” SBI said in a public notice. “Further, the Borrower(s) and Guarantor(s) are declared as Wilful Defaulter by the Bank following due process of law.”

The bank cautioned the public against having any dealings with the borrowers and guarantors associated with these companies, whose photographs were published in the notice. It also asked the borrowers and guarantors to clear their dues within 15 days, failing which they will be subjected to legal action.

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.