Sitharaman for stern action against wilful defaulters
Parliament on Wednesday passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees.
Speaking on the Bill in Rajya Sabha, Finance Minister Nirmala Sitharaman said they were working relentlessly against wilful bank defaulters. “We are not lying low. As of 2025, 912 cases related to bank frauds, including those pertaining to wilful defaulters have been filed. 239 prosecution complaints have been filed before special courts. As of December 31 2024, nine individuals have been declared as fugitive economic offenders,” said Sitharaman.
She said though non-performing assets (NPAs) have decreased drastically, the government was committed to taking stringent action against wilful defaulters.
She said in the last five years, the Directorate of Enforcement has taken up around 112 cases related to bank fraud, including those pertaining to wilful defaulters.
The Opposition accused the government of writing off crores of rupees owed by wilful defaulters.
Congress MP Shaktisinh Gohil said the government had written off Rs 87,000 crore owed by 50 wilful defaulters till 2024 citing official data. “People, including Mehul Chokshi and Rishi Agarwal are in the list of wilful defaulters. The government has written off loans to those people who looted this country and fled abroad,” he said.
Responding to issues regarding bad loans raised by the Opposition during the discussion, the Finance Minister said, “Write-offs do not mean loan waiver.”
The bill seeks to increase the tenure of directors in cooperative banks from eight years to 10 years. Once it comes into effect, the amendment would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank.
Once it comes into effect, the amendment would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank. The Bill also gives freedom to banks in deciding the remuneration to be paid to statutory auditors. Lok Sabha had passed The Banking Laws (Amendment) Bill in December 2024.
