Central Bank of India grappling with loan defaults worth Rs 1.44 lakh crore from large corporate borrowers

As per the report by The Pioneer, The Central Bank of India is grappling with loan defaults worth INR 1.44 lakh crore from large corporate borrowers. Figures from TransUnion CIBIL show the bank has filed 4,903 recovery suits across the country. The biggest defaulter is the Videocon Group, which owes INR 25,299 crore.

As per data available up to January 2026, the bank has loan defaults of around ₹1.44 lakh crore from big companies. Among all public sector banks, it ranks seventh in recovering money from such large defaulters. According to credit data agency TransUnion CIBIL, the bank has filed 4,903 recovery cases across the country.

The biggest defaulter for the bank is the Videocon Group, which owes ₹25,299 crore. The group had taken multiple loans from the bank and is now under insolvency proceedings. It is also being investigated in a case by the Central Bureau of Investigation related to alleged bribery involving former Chanda Kochhar and her husband Deepak Kochhar, where a part of the loan amount was allegedly given as a bribe.

Another major defaulter group is led by Anil Ambani. His companies—Reliance Communications, Reliance Naval Engineering, and Reliance Telecom—together owe ₹4,402 crore. Other large defaulters include Dunn Foods Pvt Ltd (₹4,191 crore) and Punj Lloyd (₹4,055 crore).

Chennai-based Coastal Energen Pvt Ltd has defaulted on ₹3,630 crore. The company has now been acquired by Adani Power through insolvency proceedings. It had taken loans from several banks including State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank and many others. The company was promoted by Ahmed A. R. Buhari, who is based in Dubai.

Other major defaulters include Lanco Infratech (₹3,543 crore), led by former MP L Rajagopal, Rolta India (₹3,422 crore), and S Kumars Nationwide (₹3,146 crore). The jewellery company Gitanjali Gems, promoted by fugitive businessmen Mehul Choksi and Nirav Modi, has defaulted on ₹2,815 crore.

Several other companies have also defaulted on large amounts. These include KS Oils (₹2,746 crore), Shri Lakshmi Cotsyn (₹2,315 crore), Frost International (₹2,138 crore), Nagarjuna Oil Corporation (₹2,117 crore), and EPC Constructions linked to the Essar Group (₹2,087 crore). In addition, companies like Sujana Towers, Housing Development and Infrastructure Ltd (HDIL), Pioneer Gas and Power, Ushdev International, and Pratibha Industries also owe significant amounts. Winsome Diamonds and Jewellery, linked to fugitive businessman Jatin Mehta, has defaulted on around ₹1,400 crore.

Transtroy India, promoted by former MP Royapatti Sambasiva Rao, has defaulted on ₹1,389 crore. Investigations by agencies like the Central Bureau of Investigation and SFIO have found alleged fund diversion, including the creation of fake companies in the names of employees like drivers and helpers. The bank had also given loans to its related company Betul Tollways Private Limited, where a Russian citizen, Oleg Sergeev, is listed as a guarantor.

Further defaulters include Lloyds Steel Industries (₹1,321 crore), Forever Precious Diamonds (₹1,267 crore), Konaseema Gas Power (₹1,222 crore), C&C Construction (₹1,161 crore), Vandana Vidyut (₹1,117 crore), Shrenuj & Co (₹1,129 crore), and others like Varun Industries and VVF (India) Ltd. Many more companies in the range of ₹600 crore to ₹1,000 crore defaults include Rabirun Vinimoy, Nakoda Ltd, Surya Vinayak Industries, Unity Infra Projects, Spanco Ltd, and EMC Limited.

The bank has also filed two recovery cases against NAFED for ₹663 crore. Another major defaulter is fugitive businessman C Sivasankaran, whose company Siva Ventures has defaulted ₹525 crore with the bank, while his total defaults across banks exceed ₹25,000 crore.

Bank officials also believe that many of these loans were sanctioned due to political pressure. In the past, even former Central Bank of India CMD Dharam Vir Taneja faced action after he refused to approve a loan for a project linked to Sanjay Gandhi in 1975, highlighting how political influence has affected lending decisions.