Mumbai, February 8: With the number of Indian loan defaulters increasing in United Arab Emirates, nine banks from the UAE are in the process to initiate legal action against Indian firms to recover around Rs 50,000 crore. The new development arrived after New Delhi made rulings of Emirati courts in civil cases enforceable in India.

According to a report, published in the Economic Times, most of the case belong either to corporate loans -- taken by Abu Dhabi or Dubai-based subsidiaries of Indian firm, while the rest belong to few individuals. On all these firms and individuals, a legal action is being sought by the UAE-based banks. CBI Files Chargesheets in Six Cases Against Zoom Developers for Bank Fraud of Over Rs 500 Crore.

The report further states that the nine UAE banks who are planning to take legal action include UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank. The other banks which are seeking an action include as Doha Bank, National Bank of Oman and National Bank of Bahrain. Banks claim that the loans taken by the firms or individuals range from 10-15 years old.

Informing more, one of the bank official had said, as the daily quotes, "Most of the cases are of corporate loans and that is also the priority for the banks as the amounts involved are huge. But some banks also have retail loan exposure to India."

Earlier on January 17, Indian government issued a notification and allowed some decrees of certain UAE courts in civil cases to be enforceable in India. Under this notification, a UAE Bank -- having a court order in its favour against a defaulter -- can seek to enforce it in India like any local lender to recover the money, adds the daily. However, the order only applies on those defaulter who fled to India or no more has operations in the Emirates.

(The above story first appeared on LatestLY on Feb 08, 2020 05:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).