Central Bank of India faces INR 1.44 lakh crore in defaults, files 4,903 cases

The Central Bank of India is grappling with loan defaults worth INR 1.44 lakh crore from large corporate borrowers, ranking seventh among public sector banks in recovery from big-ticket defaulters, according to data up to January 2026.

Figures from TransUnion CIBIL show the bank has filed 4,903 recovery suits across the country as total large defaults in the PSU banking system exceed INR 29 lakh crore.

The biggest defaulter is the Videocon Group, which owes INR 25,299 crore. This group headed by Venugopal Dhoot and brother former Shiv Sena MP Rajkumar Dhoot got nine loans, split into equal value from the Central Bank. It is also under investigation in a CBI case linked to alleged bribery involving former ICICI Bank CEO Chanda Kochhar. 10 percent of the loan value given as bribe to her husband Deepak Kochhar's firm. The company is currently undergoing insolvency proceedings.

Anil Ambani-led Reliance Communications, Reliance Naval Engineering and Reliance Telecom together account for INR 4,402 crore in dues, followed by Dunn Foods Pvt Ltd (INR 4,191 crore) and Punj Lloyd (INR 4,055 crore).Chennai-based Coastal Energen Pvt Ltd has defaulted on INR 3,630 crore. The company, now acquired by Adani Power through insolvency, had also borrowed heavily from multiple banks, leaving lenders to pursue recovery through legal routes.

Apart from Central Bank, Coastal Energen Private Limited took loans from SBI (INR 10,605 crore), Punjab National Bank, Indian Overseas Bank, Indian Bank, UCO Bank, HUDCO, IFCI, Bank of India, Bank of Baroda, Corporation Bank, Andhra Bank, J&K Bank, Canara Bank and Tamilnadu Mercantile Bank. This company was promoted Ahmed AR Buhari, settled in Dubai.

Other major defaulters include Lanco Infratech (INR 3,543 crore) headed by former Congress MP L Rajagopal, Rolta India (INR 3,422 crore) and S Kumars Nationwide (INR 3,146 crore).

Gitanjali Gems, promoted by fugitives Mehul Choksi and Nirav Modi, has defaulted on INR 2,815 crore. Additional large defaulters include KS Oils (INR 2,746 crore), Shri Lakshmi Cotsyn (INR 2,315 crore), Frost International (INR 2,138 crore), Nagarjuna Oil Corporation (INR 2,117 crore) and EPC Constructions linked to the Essar Group (INR 2,087 crore).

Among other borrowers with significant dues are Sujana Towers (INR 1,925 crore), Housing Development and Infrastructure Ltd (INR 1,464 crore), Pioneer Gas and Power (INR 1,435 crore), Ushdev International (INR 1,403 crore) and Pratibha Industries (INR 1,174 crore).Winsome Diamonds and Jewellery, linked to fugitive Jatin Mehta, accounts for around INR 1,400 crore in defaults.

Transtroy India, promoted by former TDP MP Royapatti Sambasiva Rao, has defaulted on INR 1,389 crore and is under investigation by central agencies for alleged fund diversion. This company engages in road, rail, power contracts is facing CBI and ED cases. CBI and SFIO found that Sambasiva Rao (82) created fake companies in the name of his maids, drivers and sweepers.  Interestingly, Central Bank has given loan to Transtroy India’s linked company Betul Tollways Private Limited and a Russian Citizen Oleg Sergeev is shown as personal guarantor. This person is director of many toll companies of Sambasiva Rao.   

Further defaulters include Lloyds Steel Industries (INR 1,321 crore), Forever Precious Diamonds (INR 1,267 crore), Konaseema Gas Power (INR 1,222 crore), C&C Construction (INR 1,161 crore), Vandana Vidyut (INR 1,117 crore), Shrenuj & Co (INR 1,129 crore), Varun Industries and VVF (India) Ltd.

Other defaulters ranging between INR 600 crore to INR 1,000 crore are Kolkata based Rabirun Vinimoy, Surat based Nakoda Ltd, Surya Vinayak Industries, Unity Infra Projects, Spanco Ltd,  Prakash Vanijya, Warasgaon Assets Maintenance Limited, Best Foods, Archo Tech Ltd,EMC Limited,  and The Sirpur Paper Mill.

Interestingly, Central Banks has filed two case against NAFED for recovery of INR 663 crore. NAFED is a cooperative society under Union Agriculture Ministry. Fugitive C Sivasankaran has defaulted more than INR 25,000 crore with many banks and has not left even Central Banks also. His Siva Ventures is defaulted INR 525 core.

All these big loans have no recoverable collaterals, except shares pledged and personal guarantee of company directors. Bankers say many big loans were allotted due to political support. The Then Central Bank of India's CMD Dharam Vir Taneja faced action for not giving loans to Congress stalwart late Sanjay Gandhi's Maruti car project in 1975. A CBI case was registered against him and later the agency closed the case. Taneja has chapter on his life in Central Bank on his book — A Chronology of Men, Matters and Events.