India’s public sector banks have named 1,629 corporate borrowers as wilful defaulters, with unpaid loans totalling Rs 1.62 lakh crore as of 31st March, 2025, the Finance Ministry told Parliament on 22nd July.

Responding in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary cited data from the Central Repository of Information on Large Credits (CRILC). He stated that the list of defaulters—excluding foreign borrowers—is updated every month and is available on the websites of credit information companies, such as CIBIL, Experian, Equifax, and CRIF High Mark.

To tackle wilful default and help recover bad loans, the government has implemented several measures. These include:

• A one-year bar on fresh loans even after a defaulter is removed from the list

• A five-year ban on starting new businesses or raising money from the markets

• Ineligibility for loan restructuring unless certain rules are followed

• Possibility of criminal charges under RBI guidelines

Wilful defaulters are also covered under the Fugitive Economic Offenders Act, 2018, which allows authorities to seize their properties and block them from pursuing civil cases in Indian courts.

The government added that steps are being taken against high-profile defaulters who have fled abroad. According to the Enforcement Directorate, nine individuals have been declared Fugitive Economic Offenders. Assets worth Rs 15,298 crore have been seized under the PMLA and Rs 750 crore under the FEO Act.

So far, around Rs 25,806 crore has been returned to affected banks and rightful claimants in bank fraud cases.

While foreign branch defaulters are subject to local laws, banks must still report such cases to Indian credit bureaus wherever possible.

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