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Yash Birla named 'wilful defaulter' by UCO Bank

MUMBAI: Yashovardhan Birla has been declared a wilful defaulter via Kolkata-based lender UCO Bank for non-repayment of Rs 67 crore via Birla Surya Limited - one of the vital companies in his staff.

Notifying him as a wilful defaulter, the financial institution stated the company had a credit prohibit of Rs 100 crore, of which Rs 67 crore plus pastime was once due. The loan was once categorized as a non-performing asset in 2013.

Once a promoter is assessed as a wilful defaulter via a lender, his get right of entry to to funding dries up not just for the present business however for any corporate in which he's a director.

Birla Surya had availed of the loan for the aim of manufacturing multi-crystalline sun photovoltaic cells.

Although the group has greater than a dozen companies, including Zenith Steel, Birla Power, Birla Lifestyle and Shloka Infotech, many of the companies are wired and not able to pay off creditors. The corporate confronted contemporary bother final year when 3 staff companies - Birla Cotsyn, Birla Shloka Edutech and Zenith Birla - got here beneath investigation for diversion of price range. This adopted proceedings via fixed-deposit buyers of not getting their money back.

Ironically, the Kolkata-based financial institution was once founded via Yash Birla's great-grand uncle, Ghanshyam Das Birla. GD Birla's brother Rameshwar Das Birla was once the grandfather of Ashok Birla, Yash Birla's father. Yash Birla inherited the circle of relatives business on the age of 23 after his folks died in an air crash in Bangalore. The staff was once run via advisers for a number of years. The staff also runs a number of charities and a number of other faculties beneath Birla Shloka Edutech.

According to bankers, classification of a borrower as a wilful defaulter is a very elaborate process which supplies them enough alternative to offer their case. A borrower is assessed as a 'wilful defaulter' when he fails to pay owing to his personal actions. This could come with not paying regardless of having sources, diverting price range to other actions, or promoting property without informing lenders.

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