Where you can find India’s wilful defaulters
Kingfisher Airlines, Zoom Developers, Winsome Diamonds and Varun Industries are faces of the rogue credit culture that has weakened the Indian banking system. These companies are defaulting on bank loans even though they or their promoters have the ability to repay, or they have siphoned off money, or put it some other use than was agreed on. ‘Wilful defaulters’, the central bank calls them.
But for every Kingfisher or Zoom that makes the news, there are 20 that don’t. Like a small fabric business in Ahmedabad, or an NGO that gives micro loans in Palakkad, or a supplier of automobile parts in Karimnagar. They don’t make the news because the amounts they are wilfully defaulting on is puny compared to the quantum of a Kingfisher or a Zoom.
A dataset compiled by TransUnion Cibil shows that, as of June 30, there were about 6,600 wilful defaulters, defaulting on about Rs 75,000 crore, against whom banks have filed suits. Their collective numbers and patterns raise important questions about credit risk, due diligence and accountability. The data interactive below traces the footprints of these wilful defaulters: the cities and Pincodes where they are located, who have they borrowed from and how much.
(howindialives.com is a database and search engine for public data)