BANKS' WILFUL-DEFAULTERS LIST UNDER SC SCRUTINY
The practice of RBI allowing banks to publish the names of wil ful defaulters has come under the
Supreme Court's scrutiny for its alleged circumvention of the judicial process and legislative supervision. The petitioner contended that passing such judgments on the character of a person pre-eminently falls within the domain of the legislature as it involves one's fundamental right to good reputation and challenged RBI's giving such powers to itself. In 2004, RBI authorized CIBIL to publish a list of defaulters of Rs 1 crore and above and also give out details of wil ful defaulters of Rs. 25 lakh and above against whom suits have been filed. The measure that followed the 2002 scheme that defined 'wilful defaulters' and terms like 'diversion of funds' and 'siphoning of funds'. In July this year, RBI issued a master circular combining all its instructions and directions in this regard, with a view to making available credit information pertaining to wilful defaulters to banks and blocking further bank finance to these firms.
Supreme Court's scrutiny for its alleged circumvention of the judicial process and legislative supervision. The petitioner contended that passing such judgments on the character of a person pre-eminently falls within the domain of the legislature as it involves one's fundamental right to good reputation and challenged RBI's giving such powers to itself. In 2004, RBI authorized CIBIL to publish a list of defaulters of Rs 1 crore and above and also give out details of wil ful defaulters of Rs. 25 lakh and above against whom suits have been filed. The measure that followed the 2002 scheme that defined 'wilful defaulters' and terms like 'diversion of funds' and 'siphoning of funds'. In July this year, RBI issued a master circular combining all its instructions and directions in this regard, with a view to making available credit information pertaining to wilful defaulters to banks and blocking further bank finance to these firms.
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