Yashovardhan Birla, the chairman of Yash Birla group and a member of the Birla family, was declared a wilful defaulter by UCO Bank on Sunday, June 16. The notice came after Birla Surya, a subsidiary of the Yash Birla group, defaulted on loans of about Rs 68 crore.
The notice stated that Birla Surya was sanctioned a credit limit of Rs 100 crore for manufacturing multi-crystalline solar photovoltaic cells. It clarified that the outstanding with unapplied interest is about Rs 68 crore because of which the account was declared as a non-performing asset (NPA) on June 3, 2013.
RBI, in a master circular in 2015, had debarred the company from any kind of financial help. It also declared that the companies which had falsified accounts and history of fraudulent transactions should be debarred from institutional finance from commercial banks and NBFCs. The wilful defaulters should be denied loans for five years after their names are removed from the RBI list or the credit information companies.
UCO Bank also revealed the names of seven wilful defaulters who have total unpaid dues of Rs 740 crore. The names include Mehul Choksi, Manoj Jayaswal and Abhishek Jayaswal.
