Union Bank of India: A Whopping ₹9.96 Lakh Crore Stuck in Default Cases

The Union Bank of India (UBI) stands at the forefront among public sector banks dealing with high default amounts. With liabilities amounting to ₹9.96 lakh crore, the bank is making significant recovery efforts. 

Major Defaulters: Era Group and Lanco Group 

At the top of UBI's defaulter list is Era Group, with loans exceeding ₹75,474 crore. Headed by Hem Singh Bharana, the group is embroiled in legal issues, including probes by the Central Bureau of Investigation and the Enforcement Directorate. Property and assets linked to Era Group in states like Delhi and Haryana are under scrutiny. Similarly, the Lanco Group defaulted on ₹28,521 crore in loans. Its promoter, L. Rajagopal, is known for his political connections. 

Other Significant Defaulters 

UBI is also involved in recovery processes related to Mehul Choksi and Nirav Modi's Gitanjali Gems, with dues of ₹24,404 crore. The Essar Group owes ₹17,734 crore. Other significant names include Bhushan Power and Steel Limited with ₹37,409 crore, and Indian Technomac Limited with ₹31,092 crore. 

Read More: Recovery Woes: Indian PSU Banks Struggle to Retrieve ₹29 Lakh Crore from Major Defaulters! 

Vast Range of Defaulting Corporates 

The list encompasses companies across various sectors. Amtek Auto Limited has debts of ₹5,916 crore, while Anil Ambani's firms amount to ₹8,675 crore in default. Supertech Limited and Punj Lloyd are also counted among the defaulters. The challenges extend to companies like Jay Polychem Limited, Alok Industries, and others, highlighting the wide scope of UBI's recovery actions. 

Challenges in Recovery Efforts 

Many debtor companies have entered insolvency, making recovery a complex legal process. UBI and other involved banks are turning to law enforcement outcomes related to attached assets to pave the way for future claims. The lack of viable collateral poses additional hurdles. 

Conclusion 

Union Bank of India leads a difficult journey in dealing with vast default amounts. While it faces substantial challenges in recovering these loans, ongoing legal actions and investigations may provide avenues for recoupment over time. The scale of defaults underscores systemic issues in lending and accountability. 

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