RBI Names Mehul Choksi’s Gitanjali Gems as Top Wilful Defaulter, Leading 2,664 Corporations Owing Rs 1.96 Lakh Crore!

New Delhi (The Uttam Hindu): As of December 2024, a total of 2,664 corporations have been designated as wilful defaulters by the Reserve Bank of India (RBI) for failing to repay loans, despite having the financial capacity to do so. These defaulters owe a combined Rs 1,96,441 crore to banks, raising serious concerns about the financial stability of India's corporate sector. This information was disclosed in response to Right to Information (RTI) requests filed by a prominent Indian publication, which also listed the top 100 wilful defaulters.

Leading the list is Gitanjali Gems, owned by the fugitive diamantaire Mehul Choksi, which owes Rs 8,516 crore. Choksi, along with his nephew Nirav Modi, fled India in 2018 amid accusations of a major loan fraud involving Punjab National Bank. The second-largest defaulter is ABG Shipyard, which owes Rs 4,684 crore and has been accused of defrauding 28 banks to the tune of over Rs 22,800 crore. Rishi Agarwal, the promoter of ABG Shipyard, was arrested by the Central Bureau of Investigation (CBI) in September 2022 after an audit revealed significant financial misconduct.

Other significant defaulters include Concast Steel and Power, which owes Rs 4,305 crore, with its owner recently arrested in connection with bank fraud. Era Infra Engineering follows with a default of Rs 3,637 crore, while REI Agro has a wilful default amount of Rs 3,350 crore. Fugitive Jatin Mehta’s Winsome Diamonds also features on the list, owing Rs 2,927 crore. The number of wilful defaulters has grown significantly, from 2,154 in March 2020 to 2,664 in March 2024. The total amount owed has also increased, from Rs 1,52,860 crore to Rs 1,96,441 crore over the same period. This worrying trend highlights the ongoing challenges facing India's banking system and raises critical questions about corporate governance and accountability in the financial sector. Investigations into these cases are continuing as authorities work to recover dues and prevent further defaults.