InvestorQ : Why are Dubai based banks rushing to recover Rs.50,000 crore from Indian loan defaulters?
Crowny Pinto made post

Why are Dubai based banks rushing to recover Rs.50,000 crore from Indian loan defaulters?

Answer
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7 months ago


Some of the banks based of the G7 Gulf countries had lent large amounts to Indian companies. These were largely the arms of Indian companies based in the Middle East. In the past, orders passed by the court in Emirates could not be enforced in India. However, under the latest bilateral treaty, the rulings of civil courts in the Emirates would be enforceable in India too. This has given hope to the Middle East based lenders that such a agreement would make it easier for them to pursue the defaulters. In such cases, the default can be legally pursued in India too; apart from the Middle East or even in neutral centres.