New Delhi: Chairman of the Yash Birla group, Yashovardhan Birla was named a wilful defaulter by UCO Bank on Sunday. Birla Surya had not paid a due of Rs 67.65 crore extended by the bank. UCO Bank put out an open take note with Birla’s photo, as reported by Financial Express.
As per the notice, Birla Surya was authorised a credit limit of Rs 100 crore of fund-based offices for the reason of manufacturing of multi-crystalline solar based photovoltaic cells from UCO Bank’s corporate branch in Mumbai. The current outstanding is Rs 67.65 crore, in expansion to unapplied interest from the date of the account turning into a non-performing asset (NPA).
“Due to non-repayment of dues to the bank, the account was declared NPA on June 3, 2013. The borrower has not repaid the dues owed to the bank despite several notices,” the bank said in the notice, adding, “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.”
Kolkata-based UCO Bank also declared directors of seven other companies as wilful defaulters, which have total outstanding of Rs 740 crore.
The Reserve Bank of India (RBI) on 1 July, 2015 had said that no additional facilities should be given to listed wilful defaulters by banks or any other financial institution.
As published by the RBI or credit information companies, in such case, companies (including their entrepreneurs or promoters) where banks have recognised siphoning or diversion of funds, distortion, falsification of accounts and false transactions ought to be suspended from institutional finance....