IDBI Bank is against the government plan to privatize the bank and demands to recover public money from big defaulters. Employees believe that action against defaulters has been very slow. CBI, SFIO, and ED have taken actions but are slow and haven’t made much progress. These legal cases go on for years. Owners of default companies hire expensive lawyers and delay court hearings, and some even pretend to be sick to avoid jail or delay the process.
IDBI has listed over 370 accounts that have been labeled as “willful defaulters”. During a loan crisis (between 2015-2016), the government had to give IDBI ₹21,000 crore to save it, and now these defaulters owe IDBI bank more than 26,000 crore. Out of which the top 24 borrowers together owe over 15,000 crore.
Top Ten Willful Defaulters Listed By RBI
1) ABG Shipyard – It is a major shipbuilding company. The outstanding dues of this company is ₹2,057 crore. Only ₹659 crore has been recovered, and assets worth ₹2,700 crore had been attached. CBI arrested Cairman in 2022 but granted bail due to an incomplete chargesheet.
2) Amtek Auto – It is an auto components manufacturer. Outstanding dues of this company is ₹1,805 crore. Promoter offered to repay only ₹35 crore, and assets worth ₹5,700+ had been attached. The owner’s medical bail is rejected, and is in jail.
3) Bhushan Power & Steel – It is a steel manufacturer that produces both flat and long steel products. The outstanding dues of this company is ₹1,639 crore. Around ₹19,350 crore was recovered via the Insolvency and Bankruptcy Code (IBC) and is now acquired by JSW Steel. Assets worth ₹4,938 crore had been attached, but banks still lost around ₹28,000 crore.
4) Punj Lloyd – It is a construction and engineering company. The outstanding dues of this company is ₹1,106 crore. No results yet, and the investigation by SFIO is still ongoing.
5) DHFL (Dewan Housing Finance) – It is a housing finance company that provides various home loan and deposit products to individuals and institutions. The outstanding dues of this company is ₹961.58 crore. Promoter was arrested in 2022 but recently got bail.
6) S Kumars Nationwide Ltd – It is a textile manufacturer. The outstanding dues of this company is ₹834 crore. S Kumars Nationwide Ltd diverted this money through fake vendors and shell companies. Fake companies were made to route money but actually they don’t exist. Some diverted money was used to own luxury apartments via real estate project in Mumbai. Reid & Taylor, a subsidiary brand under S Kumars Nationwide Ltd, also defaulted adding to the financial scandal. Reid & Taylor’s outstanding dues is ₹260 crore.
7) EPC Constructions – It is an Engineering, Procurement, and Construction (EPC) company specializing in project execution and delivery across various industries and locations. The outstanding dues of this company is ₹802 crore. It was promoted by the ESSAR Group.
8) IVRCL – It is the largest water company in India. The outstanding dues of this company is ₹598 crore. CBI filed a case against the owner.
9) Ballarpur Industries – This company manufactures a wide range of writing and printing papers, including coated and uncoated options. The outstanding dues of this company is ₹493 crore. Promoter misused the company money. He even bought a private jet using company funds. He was arrested in 2021 and later granted bail.
10) Gupta Coal – This company specializes in inland coal handling and logistics. The outstanding dues of this company is ₹451 crore. This was linked to the coal scam. Loans turned into NPAs, but banks called it fraud.
Other big defaulters listed by IDBI
Mehul Choksi (Gitanjali Gems) – ₹339 crore
Vijay Mallya (Kingfisher Airlines) – ₹309 crore
Unitech – ₹395 crore
Educomp – ₹447 crore
ERA Infra – ₹427 crore
IDBI unions say that only 50% of these dues are recovered. Many cases are still pending, and privatizing the bank might let defaulters get away more easily. It might help the same people who misused public money. In March 2022, the All India Bank Officers’ Association (AIBOA) also went on a two-day strike to oppose the privatization of IDBI Bank, emphasizing the need to strengthen the bank rather than sell it off. Employees say there is no need to sell the bank when IDBI is now profitable and paying dividends.