New Delhi: Finance Minister Arun Jaitley today put private sector debtors on notice saying they will have to pay their dues to banks or allow somebody else to step in and take control of the business. Using the new bankruptcy law, the central bank has prodded banks to initiate insolvency proceedings against 12 large corporate defaulters to resolve Rs 2 lakh crore or almost a fourth of the country’s bad debt. More defaulters are being notified for action. Jaitley said the government was open to providing more capital to banks but cleaning up stressed loans was bigger priority.
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