Transstroy Projects Ltd, promoted by former Telugu Desam Party MP Rayapati Sambasiva Rao, Indu Projects owned by Shyam Prasad Reddy who had invested in the business entities of Andhra Pradesh chief minister Y S Jagan Mohan Reddy and Deccan Chronicle Holdings Ltd headed by media baron T Venkattram Reddy are among top 50 wilful defaulters of banks loans between 2014 and 2019.
This was revealed by the Reserve Bank of India in a reply to a query made under Right to Information Act by an activist Saketh Gokhale in September last. The reply came on April 24.
According to the RBI, these defaulters have evaded repayment of loans to the tune of Rs 68,607 crore, which the banks were forced to write off.
Topping this list of wilful defaulters is Geethanjali Gems Ltd owned by Mehul Choksi who ran away to Europe after defaulting the loans to the extent of a whopping Rs 5,492 crore.
FMCG company REI Agro Limited (Rs 4314 crore) and Winsome Diamonds and Jewellery of Jatin Mehta (Rs 4076 crore) come in the next two positions.
Noted fugitive millionaire Vijay Mallya of Kingfisher Airlines who is hiding in London also defaulted loans to the extent of Rs 1,943 crore.
Ruchi Soya Industries floated by spiritual guru Baba Ramdev also defaulted bank loans to the extent of Rs 2,212 crore.
Among the defaulters from the Telugu states, Deccan Chronicle chairman got Rs 1,915 crore waived and Rayapati who promoted Transstroy defaulted Rs 1790 crore which was also waived.
Shyam Prasad Reddy of Indu projects also did not pay his bank loan outstanding to the extent of 835 crore.
Coastal Projects Limited belonging to the close relative of a prominent telugu television channel owner also defaulted bank loans to the extent of Rs 984 crore, which was written off as bad debt.
Though the Central government authorities defend this writing off of loans saying it was part of the banking strategy to keep their balance sheets clean and the debts can be recovered at a later date, there are no instances of any big people repaying their defaulted loans at a later stage!
