Real estate developers Coastal Projects Pvt Ltd and Zoom Developers Pvt Ltd are among India’s top-50 wilful defaulters, data available with the ministry of finance show.
As of March 31, 2022, the top-50 wilful defaulters in the country owned banks a cumulative Rs 92,570 crore, minister of state for finance Bhagwat Karad told the Lok Sabha on December 19, 2022. Of this, Hyderabad-based Coastal Projects owes Rs 2,311 crore while Indore-headquartered Zoom Developers has a credit liability of Rs 2,147 crore. With a wilful default of Rs 7,848 crore, fugitive businessman Mehul Choksi-promoted Gitanjali Gems is the biggest defaulter.
Wilful defaulters are those who refuse to repay credit despite having the financial wherewithal to do so. They are neither allowed to borrow fresh but nor to start any new ventures under the prevailing RBI laws.
Proceedings are on to establish the extent of fraud committed by the two companies and recover losses.
An Enforcement Directorate (ED) probe is on to unearth the financial irregularities committed by Zoom Developers under various sections of the Prevention of Money Laundering Act. The company is accused of using bank finance to buy immovable properties by channeling the money to Zoom Realty Projects. The ED has attached severed properties owned by the company in Madhya Pradesh as part of the ongoing investigation.
Last year, the CBI started its probe against Coastal Projects Ltd and its directors in connection with over Rs 4,736-crore fraud in a consortium of banks led by SBI. The company is accused of falsified books and financial statements, siphoning off funds and committing fraud.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
Related Posts
Consumer sentiment takes a mild hit amid global headwinds: Survey.
Retail leasing up 114% Y-o-Y in 9 months of 2022: Report.
Stamp duty, registration fee revenue jumps 35% in H1: Report.
Dubai sees highest property price rise in past 1 year: Report.
RBI hikes repo rate by 35 basis points.
H1 FY23 home sales show highest peak in past 10 years: Report.
