Did 50 companies default on loans amounting to Rs 36,000 crore? Gujarat HC asks RBI to verify

The Gujarat High Court on Wednesday asked the Reserve Bank of India to verify a claim made in a PIL that 50 companies in the country have defaulted on repayment of Rs 36,000 crore of loans, and obtain information about action taken by the concerned public sector banks.

A division bench of Chief Justice R Subhash Reddy and Justice V M Pancholi was hearing the PIL filed by Ashok Jagota which names the alleged defaulter firms. After verification of the claim, the RBI should seek information from the banks on the action being taken against corporate defaulters, the court said.

Jagota has relied on details provided by All India Bank Employees Union. RBI and Enforcement Directorate should take action against the defaulters and the concerned public sector banks, says the petition.
The PIL highlights the case of Vadodara-based Sandesara Group of Companies, one of the respondents, which it alleged diverted the borrowed money to foreign entities.
However RBI and ED took no action, it alleges. The next hearing would be on July 1.