Union Bank of India freezes MTNL’s accounts for non-payment of dues

Union Bank of India has frozen all accounts of Mahanagar Telephone Nigam Limited (MTNL) for non-payment of dues. According to an exchange filing, the action was taken after MTNL’s loan account turned into a non-performing-asset.

MTNL has asked for the unfreezing of its current accounts in branches around Delhi and Mumbai. Meanwhile, Union Bank clarified in a letter that, should the past-due sum remain unpaid, account freezing is an automated procedure that cannot be undone.