The Big Picture - UAE Banks: Indian Defaulters & Recovery
At least 9 banks from the UAE are in the process of initiating legal action against Indian defaulters to recover around Rs 50,000 crore, after New Delhi made the rulings of Emirati courts in civil cases enforceable here. While most of the cases involve corporate loans taken by Dubai or Abu Dhabi-based subsidiaries of Indian companies, action is also being planned against individuals, according to a report in the Economic Times. The banks include UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank. A few other lenders such as Doha Bank, National Bank of Oman and National Bank of Bahrain, which have exposure to Indian entities or citizens through their branches in Dubai or Abu Dhabi, also have either already moved courts in the UAE or are in the process of doing so in the coming weeks, the report added. The Indian government on January 17 issued a notification allowing the decrees of certain UAE courts in civil cases to be enforceable in India. This means a UAE bank, if it has a court order in its favour against a defaulter who has fled to India or no more has operations in the Emirates, can seek to enforce it here like any local lender to recover the money.