1,629 Wilful Defaulters Owe Rs 1.62 Lakh Crore to PSU Banks, Finmin Discloses

In a major disclosure on corporate financial misconduct, the Ministry of Finance informed the Rajya Sabha on Tuesday that 1,629 corporate entities have been officially classified as wilful defaulters by public sector banks, with total outstanding loans exceeding Rs 1.62 lakh crore as of March 31, 2025.

Responding to a question by MP Sagarika Ghose, Minister of State for Finance Pankaj Chaudhary stated that this data, excluding overseas borrowers, is based on reports submitted by banks to the Central Repository of Information on Large Credits (CRILC).

It is pertinent to note that the Reserve Bank of India (RBI), through its Master Directions on Willful and Large Defaulters, mandates banks to submit the list of such defaulters to all Credit Information Companies (CICs) on a monthly basis. These lists, covering defaulters with loan amounts of Rs 25 lakh and above, are publicly accessible via the websites of CIBIL, Experian, Equifax, and CRIF Highmark.

Also Read: Check for ‘Wilful Default’ in NPA Accounts Exceeding Rs 25 Lakh: RBI to Banks | Republic World

Measures to curb delinquency

The government has implemented a series of stringent measures to tackle the issue lful defaults. Wilful defaulters are barred from obtaining additional loans, and their companies are prohibited from launching new ventures for a period of five years. Moreover, such companies are disqualified from accessing capital markets, limiting their ability to raise funds through public offerings. 

Credit restructuring is also restricted—no restructuring of credit facilities is permitted for entities linked to wilful defaulters until one year after their names are removed from the defaulter list. 

In addition, banks are empowered to initiate criminal proceedings in eligible cases, as per directives issued by the Reserve Bank of India. The government has also invoked the Fugitive Economic Offenders Act (FEOA), 2018, which allows for the attachment and confiscation of properties owned by fugitives and bars them from defending civil claims.

Global crackdown on defaulters abroad

Addressing concerns about corporate defaulters who have fled the country, the government revealed that nine individuals have been declared as Fugitive Economic Offenders under FEOA. As per data from the Enforcement Directorate, approximately Rs 15,298 crore in assets have been confiscated under the Prevention of Money Laundering Act (PMLA), and Rs 750 crore under Fugitive Economic Offenders Act (FEOA).

Additionally, Rs 25,806 crore worth of assets have been restituted to banks and legitimate claimants in various bank fraud cases.

Overseas wilful defaults are also being addressed. RBI guidelines allow banks to report such cases to Indian Credit Information Companies, provided foreign laws do not restrict such disclosures.