Bad loans: SC gives RBI a week to reply on expert panel report

The Supreme Court on Monday granted one week's time to the Reserve Bank of India (RBI) to respond to a report of a committee appointed to deal with bad loans with banks that have crossed Rs 8 lakh crore.

A bench of Chief Justice J S Khehar and Justice D Y Chandrachud gave the federal bank time until July 24 to file its response to the report of a committee set up by it to suggest measures to deal with increasing of loan defaults.

Lawyer Prashant Bhushan, appearing for the NGO 'Centre for Public Interest Litigation' (CPIL), said that the RBI was asked to disclose the names of big loan defaulters who owe Rs 500 crore.

The counsel for the RBI opposed the contention, saying that the federal bank was not under an obligation to reveal the names and the court could deal with the report on it.

The bench ordered listing of the PIL for hearing after four weeks.

The apex court had in November last year observed that the disclosure of names of big loan defaulters who owe Rs 500 crore and more to banks, would not lead "anywhere" as the important issue was to address "root cause" of accumulation of the non-performing assets (NPAs).

The observations had come after the Supreme Court had repeatedly asked the RBI and the Centre about the possibility of disclosing names of those who have defaulted in repaying loans.