Union Bank’s magic wand rectifies large defaulters’ dues from INR 9.96 to INR 4.93 lakh cr

Following a series of reports exposing the large defaulters list within the PSU Banks, Union Bank of India has now rectified their Large Defaulters report list of February 2026, which says the list is reduced to INR 4.93 lakh crores with 12,997 cases or entries. But, what is pertinent to note is how it has been reduced so drastically to more than INR 5 lakh crores by cancelling around 6,000 entries or cases?

The Pioneer last month reported a 13-day-long campaign on large defaulters of 11 PSU banks, ranging from INR 29 lakh crores defaults by big corporates. Indian Bank has not yet filed its large defaulters list for the past year to rating agency TransUnion CIBIL. As per RBI direction, all banks have to file a monthly list of defaulters to approved rating agencies.

In its news report in the March 12, 2026 edition, it was highlighted that Union Bank of India tops among the largest defaulter with INR 9.96 lakh crores with 18,197 cases or entries as per the Bank’s own filing to rating agency TransUnion CIBIL up to January 2026. The large defaulters list means those who owe more than INR 1 crore and above to a bank, and then the bank is conducting recovery cases against them.

The Pioneer emailed Union Bank of India’s MD and CEO, Asheesh Pandey and his colleagues on

April 1, asking how the alteration/reduction had happened. Till the time of going to press, The Pioneer had not received any response.

The basic questions raised by The Pioneer were — “We have seen your latest report to TransUnion CIBIL after The Pioneer’s expose, which reduced from INR 9.96 lakh crores to INR 4.93 lakh crores dues from large defaulters. We are not going into the specifics of each loan. But we must ask you a specific

question: As per your January 2026 list, Era Infra Engineering, which belongs to Era Group, headed by Hem Singh Bharana, was your largest defaulter with more than INR 75,000 crores. In your new list of February 2026, submitted to TransUnion CIBIL, this name is not

included?  Has he paid dues, or have you allowed a one-time settlement, or have you written off the loans?”

As per the rectified/altered list of Union Bank to TransUnion CIBIL, up to February 2026, Lanco Group is the largest defaulter with 40 loans, totally amounting to INR 50,088 crores. Lanco Group is a politically exposed company. This Andhra Pradesh-based group is headed by L Rajagopal, a former Congress MP. Rajagopal is notorious for pepper-spraying in the Lok Sabha in February 2014, protesting against Andhra Pradesh bifurcation. From 2016, he has mostly parked in Australia and the United States and no case is registered against him for bank fraud.

The second biggest defaulter of Union Bank is literally an unknown company — Indian Technomac. This Himachal Pradesh-based company, which manufactures machinery, with a registered address in Delhi, owes INR 29, 019 crores. This company already fizzled out through the insolvency process and took huge loans from many PSU banks, and the question is how PSU banks are going to recover the dues.

The third largest defaulter of Union Bank is none other than Videocon Group, owned by Venugopal Dhoot and his brother, former Shiv Sena MP Rajkumar Dhoot. This debt-sunken company owes INR 24,927 crores to Union Bank. CBI has already registered a case against Videocon for bribing ICICI Bank head Chanda Kochhar’s husband, Deepak Kochhar, for getting INR 3,250 crores. According to CBI, Videocon paid a bribe of INR 325 crore (10% to the husband’s company) to get loans from the wife, Chanda Kochhar, who headed ICICI in 2018. As per many bankers, Videocon, with its political clout, took more than INR 75,000 crores from many banks, based on a project of importing oil from Mozambique in 2012. Later, Videocon sold its Mozambique oil project to ONGC. Videocon’s telecom and Dish TV project collapsed after the Supreme Court cancelled licences in connection with the 2G Scam.

The fourth largest defaulter of Union Bank is Hyderabad-based IVRCL Ltd with a dues of INR 23, 418 crores, followed by fugitives Mehul Choksi and his nephew Nirav Modi companies, including Gitanjali Gems, Nakshtra World, Firestar Diamonds, with a dues of INR 18,309 crores.

Next in the list is an interesting company, based in Guntur, named Transstroy India Limited. This Russian kind of company is owned by former TDP MP Rayapati Sambasiva Rao. This company and its linked companies owe Union Bank INR 10,355 crores and owe huge amounts of money to many PSU Banks, ranging to more than INR 50,000 crores.

Vociferous MP Rao (84 years) was charged by CBI in 2018 for cheating banks by making a lot of shell companies and posting his drivers, maids, cooks, servants, and gardeners as directors. Rao’s company has floated many Toll Companies, and in many companies, one Russian, Oleg Sergeev, has been made a director. This Russian citizen is shown as a personal guarantor by many PSU Banks. The million-dollar question is, how Indian banks can recover from Russian citizens, while they can’t even touch powerful Indian Citizens. 

The sixth largest defaulter of Union Bank is the Essar Group with INR 10,161 crores, followed by noted working company PC Jewellery with dues of INR 6,243 crores, Mumbai-based Pandhe Infracons (INR 6,003 crores), Kolkata-based Simplex Infrastructures (INR 5,993 crores), Zoom Developers (INR 5,287 crores) and Delhi-based Jay Polichem (INR 5,148 crores).

Major defaulters of Union Bank from INR 2,000 crores to INR 5,000 crores are: Mumbai-based GTL Ltd and its linked firms (INR 4,505 crores), big defaulter in real estate Supertech (INR 4,203 crores), Kolkata-based Concast Steel & Power (INR 4,054 crores), Sahara Hospitality (INR 3,774 crores), Anil Ambani’s Reliance Group (INR 3,587 crores), Solapur Tollways (INR 3,398 crores), Hyderabad-based VMC Systems (INR 3,222 crores), Chennai Elevated Tollway (INR 3,219 crores), Sai Renewable Power (INR 3,139 crores), Pratibha Industries (INR 3,117 crores), Indore-based Bhatia Global Trading (INR 3,054 crores), Mumbai-based Krishna Knitwear Technology (INR 2,975 crore), Chennai-based Zylog Systems (INR 2,906 crores), Kolkata-based PC REI Agro (INR 2,889 crores), Mumbai-based companies PSL Limited (INR 2,865 crores), Siddhi Vinayak Logistics (INR 2,824 crores).

Other prominent defaulters are: Hyderabad-based Gayatri Projects (INR 2,730 crores), SKUMARS (INR 2,623 crores), and media company Deccan Chronicle Holdings (INR 2,217 crores), Sohna-based Kings Canyon SEZ (INR 2,025 crores) and Bengal India Global Infrastructure (INR 2,014 crores). Banks have no recoverable collateral from many of these companies, except their shares, which have no value, as these companies are facing insolvency procedures.

Interestingly, some companies which plundered INR 1,000s of crores from many PSU banks have shown mercy to Union Bank. Fugitive Sivasankaran’s Siva Industries took only INR 288 crore, fugitive Jatin Mehta’s Winsome Diamond has dues of INR 261 crore, and insolvent Jaypee Cement took only INR 167 crore from Union Bank.