The Union Bank of India (UBI) has the maximum default by large corporates amongst the public sector banks. The bank has a total default of Rs 9.96 lakh crore by large corporates and has filed 18,197 civil cases across the country to recover the public money. As per the report by The Pioneer, Many of these loans were given without recoverable collateral, often against pledged shares that were manipulated.
| Company / Group | Loan Default Amount (₹ Crore) |
|---|---|
| Era Group (Era Infra Engineering Ltd) | 75,474 |
| Bhushan Power and Steel Limited | 37,409 |
| Indian Technomac Limited | 31,092 |
| Lanco Group | 28,521 |
| Gitanjali Gems (Mehul Choksi, Nirav Modi) | 24,404 |
| Essar Group | 17,734 |
| Anil Ambani Group Companies | 8,675 |
| PC Jeweller | 6,773 |
| Amtek Auto Limited | 5,916 |
| Jay Polychem (India) Limited | 5,148 |
| Supertech Limited | 3,234 |
| Sai Renewable Power Limited | 3,139 |
| Bhatia Global Trading Ltd | 3,054 |
| Diamond Hut India Pvt Ltd | 1,453 |
| Nafto Gaz Indo Pvt Ltd | 1,479 |
| SEL Textiles | 1,557 |
| Ramakrishnan Spintex Pvt Ltd | 1,193 |
| Biotar Industries Ltd | 1,070 |
| Gayatri Projects | 1,024 |
| Shakti Bhog Food Limited | 1,040 |
| MBS Jewellers | 1,005 |
| Sadbhav Engineering Limited | 940 |
| IVRCL Ltd | 900 |
| Punj Lloyd | 947 |
| Harish Chandra (India) Limited | 1,275 |
| Yojaka India Pvt Ltd | 1,493 |
| Alok Industries (UBI exposure only) | 1,247 |
The biggest defaulter is real estate firm Era Group, headed by Hem Singh Bharana, with loan dues of over INR 75,474 crore. Bharana (66) faces cases from the Central Bureau of Investigation and the Enforcement Directorate for cheating and siphoning money from banks to the British Virgin Islands. Bharana and his companies own large land parcels across Delhi, Uttar Pradesh, Haryana and Punjab.
A Delhi branch of Union Bank of India gave 21 loans to Era Infra Engineering Limited, each split into INR 3,594 crore. Era Group companies are now facing insolvency cases and had also taken loans from Vijaya Bank, ICICI Bank, Axis Bank, IFCI Limited, State Bank of India, IDBI Bank and Canara Bank. Bharana is also fighting cases against banks and the Reserve Bank of India for labelling his accounts fraudulent.
Another defaulter is Lanco Group, which defaulted INR 28,521 crore through more than 30 loans from UBI’s Delhi and Hyderabad branches. Its promoter L. Rajagopal was a Congress MP from Andhra Pradesh.
Another defaulters are fugitives Mehul Choksi and Nirav Modi. Their company Gitanjali Gems received 31 loans totaling INR 24,404 crore. The Essar Group received 29 loans worth INR 17,734 crore, while Bhushan Power and Steel Limited, now in insolvency, took eight loans totalling INR 37,409 crore.
Other defaulters include Indian Technomac Limited (15 loans totaling INR 31,092 crore); Amtek Auto Limited (six loans worth INR 5,916 crore), whose promoter Arvind Dham diverted over INR 33,000 crore through 500 shell firms and faces CBI and ED cases.
The list also includes Sai Renewable Power Limited (INR 3,139 crore); MBS Jewellers (INR 1,005 crore); and Delhi-based PC Jeweller (INR 6,773 crore). Anil Ambani and his companies received eight loans totalling INR 8,675 crore, including loans to Reliance Communications, Reliance Naval and Engineering Limited and Reliance Telecom. Supertech Limited received 11 loans totalling INR 3,234 crore, while debt-ridden Punj Lloyd took seven loans totalling INR 947 crore before being taken over by Adani Group through the Insolvency and Bankruptcy Code process.
Other defaulters include Jay Polychem (India) Limited (INR 5,148 crore), Alok Industries (INR 1,247 crore, besides INR 6,299 crore owed to SBI), Bhatia Global Trading Ltd (INR 3,054 crore), Sadbhav Engineering Limited (INR 940 crore), Biotar Industries Ltd (INR 1,070 crore loans), Gayatri Projects (Rs. 1,024 crore), and Yojaka India Private Limited (INR 1,493 crore).
Additional dues include Ramakrishnan Spintex Private Limited (INR 1,193 crore), SEL Textiles (INR 1,557 crore), Diamond Hut India Private Limited (INR 1,453 crore), IVRCL Ltd (INR 900 crore), Harish Chandra (India) Limited (INR 1,275 crore), Shakti Bhog Food Limited (INR 1,040 crore), and Nafto Gaz Indo Private Limited (INR 1,479 crore).
As per reports, Most of these companies are now in insolvency, and the pledged shares have little or no value. Banks may only recover money later by claiming on ED-attached land assets after chargesheets are filed and courts allow such claims.
