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Union Minister YS Chowdary Faces Arrest Over Alleged Loan Default

A non-bailable warrant has been issued against Union minister YS Chowdary on the complaint of a Mauritius-based bank.

A judge issued the warrant on Thursday after the minister did not appear despite three court summons.

As a non-executive director of Sujana Industries, Chowdary has been indicted of failing to repay over Rs.100 crore in loans taken for Mauritius-based Hestia Holdings, a division of Chowdary's Sujana Universal Industries.

Sanjeev Kumar, the lawyer representing the Mauritian bank said, "We submitted before the court that the minister was making excuses and flouting the orders of the court on a regular basis. We also argued that this was a fit case for issuance of non bailable warrants as the accused was evading the process of the court."

The minister had asked to be exempted from appearing before the court on the ground that as a MP, he was busy with "urgent work in Delhi."

At a time when banks are trying to recover 9,000 crores owed by industrialist Vijay Mallya, the government had last month said that loan defaulters would not be excused.

Finance Minister Arun Jaitley said, "Banks have full authority and autonomy to deal with each wilful defaulter."