It is now an established fact that commercial banks in India tend to bend over backwards to bail out big industrialists by waiving thousands of crores of rupees, while showing no mercy in fleecing small farmers and petty shopkeepers of their bank dues, even of small amounts.
Here is the yet another case of the banks’ favouritism towards big people, who declare insolvency after taking huge amounts as loans for their business interests.
On Friday, the Hyderabad Bench of the National Company Law Tribunal (NCLT) has approved a One-Time Settlement (OTS) for Hyderabad-based Gayatri Projects, promoted by former MP T Subbarami Reddy’s family.
Under this arrangement, the promoters will pay Rs 2,400 crore to reclaim ownership of the company, despite the company owing banks a massive Rs 8,100 crore.
With 97% of lenders led by Canara Bank giving their consent, banks have effectively written off Rs 5,700 crore — nearly 70% of the total dues.
Gayatri Projects has already deposited Rs 115 crore, with Rs 750 crore due within 90 days.
Gayatri Projects, once a prominent EPC company, defaulted on its dues in November 2022, prompting banks to file for insolvency. By January 2024, creditors even sought liquidation as no buyers came forward.
Ironically, the same promoters who failed to repay now step in to regain control by paying only a third of the debt — something unimaginable for small borrowers.
This case once again highlights the double standards in India’s banking sector: corporate promoters with political clout manage to get “haircuts” running into thousands of crores, while ordinary people are forced to repay every rupee with interest — or face ruin.
While corporate houses manage to settle thousands of crores with just a fraction of the actual dues, small borrowers are hounded relentlessly.
Farmers often lose their lands for failing to repay loans of a few lakhs, and petty shop owners are dragged to court for defaults running into thousands.
Unlike big defaulters who get repeated lifelines through OTS and restructuring, small borrowers face harassment, auction of properties, and even criminal charges.