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Kingfisher Airlines is the nation's biggest defaulter: Report

Last Updated: Thursday, July 17, 2014 - 14:20

Zee Media Bureau

New Delhi: Kingfisher Airlines has emerged as the country's biggest defaulter as per a report published Thursday by a leading English daily.

According to the report, Kingfisher Airlines, Winsome Diamond, Electrotherm
India, Corporate Power, Sterling Biotech, Forever Precious, KS Oil and Zoom Developers were the nation's top defaulters.

While Vijay Mallaya promoted Kingfisher Airlines has failed to repay a loan of Rs 4,000 crores to state -owned banks, the total loan taken by top 50 defaulters amount to a whopping Rs 53,000 crores as of December, 2013.

The revelations come after the public sector banks submitted a list of top non performing loans to the finance ministry.

The previous government has failed to extract the bad loans from these big defaulters for years despite of their promises to do so. Data stated in the report also mentions that the various state -owned banks have been able to recover only a meagre Rs 1,100 crores from these big fishes, a major chunk of which was paid up by Kingfisher Airlines.

According to one estimate, if the banks are able to recover the entire amount of Rs 53,000 crores, the ailing state owned banks will be able to meet a quarter of their resource requirements for the next half a decade. Such a recovery will also prevent the government from selling its stake in the major public sector banks. Many of the defaulters stated in the list have also been classified as wilful defaulters.

Now the onus have been passed onto the newly elected Narendra Modi led NDA-2 government to recover the bad loans from these big industrialists.

First Published: Thursday, July 17, 2014 - 14:02
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