New Delhi, Apr 12 (The Hindu) : If confidentiality prevents revealing the names, the Supreme Court on Tuesday said the RBI should atleast publicly expose the "huge and substantial amounts" owed by the rich who took bank loans above Rs. 500 crore and defaulted.

"People taking thousands of crores to run their empires and then later declare insolvency only to take more loans from other sources. This, when poor farmers are driven to suicide unable to pay their small debts," Chief Justice of India T.S. Thakur observed.

The Supreme Court said it would hold detailed hearings on whether confidentiality between banks and their rich customers would prevent itfrom passing a judicial order to reveal the details of the "very substantial debt amounts" of those who have taken over Rs. 500 crore loans from banks.

The Bench, also comprising Justice R. Banumathi, issues notice to the Indian Banks Association and the Ministry of Finance.

"We want you to formulate issues by April 26. We will have a focussed and articulate debate on these issues. Primary question is whether there is any confidentiality on information relating to outstanding debts over Rs. 500 crore," Chief Justice Thakur said.

The court is hearing a PIL filed by NGO Centre for Public Interest Litigation seeking full disclosure of names and details of those who have defaulted after taking over Rs. 500 crore loans.

The RBI had provided the list of defaulters to the court in a sealed cover.

"Can the total amounts in default be disclosed? We can keep the names of the defaulters confidential, but total amounts can be disclosed..." Chief Justice Thakur asked RBI.

RBI counsel responded that the information was obtained by it in a fiduciary capacity and any exposure will have an impact on the country's economy and reduce confidence within the business and investment sector.

"The amounts outstanding is very large... the next question we would ask is what steps are you taking to recover them... Also what about the status of non-performing assets?" CJI said.

RBI said any disclosure would be violative of the provisions of the RBI Act, Credit Information Companies ( Regulations) Act, 2005 and a 1983 law on fidelity and secrecy in public financial situations.

Representing the NGO, advocate Prashant Bhushan countered that there is no requirement for a cloak of secrecy to favour the defaulters. He submitted that a 2015 judgment of the Supreme Court has already favoured transparency rather secrecy.

Keywords: bad loans, non performing assets, RBI