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Last Updated : Feb 10, 2020 06:51 PM IST | Source: Moneycontrol.com

Indian defaulters owe Rs 50,000 crore to 9 UAE banks; highest numbers from Kerala: Report

The report mentioned that UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank are among those that have already initiated action in this regard.


Around 9 banks from the United Arab Emirates (UAE) are looking to carry out legal action against Indians who have defaulted on loans worth Rs 50,000 crore, The Economic Times reported.

The development comes after a January 17 notification by the Indian government that identified UAE as a "reciprocating territory" for enforcement of certain civil court judgements.

This means that UAE banks can now carry out proceedings against those defaulters that have fled to India or have closed their UAE operations, provided that these banks got a favourable verdict by the UAE court. Similarly, in civil cases, the UAE will also admit the rulings of Indian courts.

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The report mentioned that UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank are among those that have already initiated action in this regard.

A report by Gulf News noted that over 75 percent of these defaults were by large business and corporate houses, while the smaller retail loan and credit card default accounted for about 20 percent. It added that many banks that belong to the Gulf Cooperation Council (GCC) are also looking to avail a similar option to take action against Indian defaulters. According to a report by Matrubhumi, the largest number of defaulters were from Kerala.

The report noted that several Indian businessmen and other salaried earners started leaving the UAE in 2016, after having defaulted on some loans following a slump in the country's small and medium enterprises (SME) sector that led to job losses and the closure of businesses.

India's law ministry, earlier in January this year, named the UAE a 'reciprocating territory', wherein verdicts of 'superior courts' in that country can now be executed through local courts in India.

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First Published on Feb 10, 2020 06:26 pm
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