India's Bad Loans from Willful Defaulters Skyrocket to 3.54 Trillion Rupees
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Unrecovered bank loans from willful defaulters in India have risen sharply to 3.54 trillion rupees, involving 16,883 accounts.
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Wilful defaulters typically commit fraud - siphoning off funds for personal use or diverting them to unproductive activities.
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Top defaulters include absconding billionaires and old companies. Banks recover only 10% of written off debt.
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Lack of accountability allows influential borrowers to get huge unsecured loans that banks cannot recover when projects fail.
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Experts recommend tighter appraisals, monitoring of funds use, and accountability for loan sanctioning authorities to prevent further rising bad debts.