State Bank of India is readying to invoke personal guarantees of promoters of defaulting entities through the insolvency process.
Once the nation’s top lender gets the nod of the National Company Law Tribunal (NCLT), personal guarantees given by the promoters of about 40 defaulting corporate entities could be invoked.
Top sources told BusinessLine that SBI has prepared a list of such defaulters and this is also being sent to the Finance Ministry.
In July, the Supreme Court had asked the Centre to explain why these guarantees have not been invoked by public sector banks. This came in the wake of a public interest litigation filed in the top court asking why ₹1.8-lakh-crore worth of personal guarantees given by defaulting promoters had not been invoked to recover the outstandings. The PIL named several promoters whose personal guarantees have not been invoked, including Kapil and Dheeraj Wadhwan of DHFL (₹79,344 crore); Venugopal