WILFUL DEFAULTER

India's central bank is set to hold a meeting with top management from asset reconstruction companies (ARCs) to discuss corporate governance and stressed-asset resolutions. This comes amidst concerns about potential back-door entry by defaulting pro...

The Finance Ministry is reviewing the Bombay High Court order banning public sector banks from seeking look-out circulars (LOCs) against wilful defaulters. The court deemed the order arbitrary and violative of a person's fundamental rights. The fina...

The Bombay High Court declared public sector lenders ineligible to issue Look Out Circulars (LOCs) under Central government office memoranda. While deeming this practice as 'arbitrary', the court upheld the constitutionality of the Central governmen...

Many laws governing the banking industry have also evolved to accommodate rapid changes that are driving innovation at breakneck speed. However, some attitudes among bankers and regulators have lagged behind, and don't reflect the digital age. One s...

Lenders seek RBI guidance on protecting officers' identities identifying defaulters. Recent court order mandates disclosing committee members. Indian Banks Association seeks advice too. Risks highlighted for officers personally named.

Bombay High Court's ruling alters banks' handling of wilful default cases. Evidence provision mandated, transparency increased. Concerns raised over borrowers challenging actions. RBI guidelines modification pending.

The resolution professional's actions, including the delay in presenting the resolution plan and the addition of homebuyers to the committee, were seen as detrimental to the interests of the lender. Furthermore, it was discovered that promoter of th...

The bench was hearing a petition filed by Milind Patel, former joint managing director of IL&FS Financial Services Limited (IFIN), challenging an order passed by the Union Bank of India in February 2023 declaring the firm and its promoters wilful de...

In its petition, IL&FS said it is aggrieved by the "blatant violation and disregard" of previous NCLAT orders by the banks. IL&FS also charged banks of taking procedural action under the garb of the RBI guidelines, and "harassing the Directors of th...

Delhi High Court sets aside Bank of Baroda and Punjab National Bank's decisions declaring Ratul Puri as a wilful defaulter. The court questions the verification of funds and emphasizes the need for proper enquiries by banks dealing with public funds.

IL&FS Group seeks judicial intervention against banks declaring it a wilful defaulter and taking action against board members. Approaches NCLAT against RBI and 11 public sector banks. Board dealing with Rs 94,000 crore bad debt. Banks' actions aimed...

Banks have again approached the Reserve Bank of India (RBI) to request an extension in the deadline for classifying non-performing accounts as wilful defaulters, according to sources familiar with the matter. In September, the RBI had initially give...

According to information provided by the Reserve Bank of India (RBI), 2,623 unique borrowers who are classified as wilful defaulters. These borrowers have a total outstanding debt of Rs 1,96,049 crore with scheduled commercial banks as of March 2023...

Reserve Bank of India has announced new guidelines on labelling wilful loan defaulters that set out timelines, processes and penalties. However, they do not lay out any guidelines on establishing intention of default. This may extend the evaluation ...

Banks in India will not provide a personal hearing to companies before classifying them as 'fraud' accounts, but will re-evaluate the decision if legally challenged. The procedure, which aims to codify the steps to classify companies with outstandin...

Large defaulters are those that have an outstanding amount of Rs 1 crore and above. According to RBI data, there were about 16,000 cases of wilful default involving nearly Rs 3.5 lakh crore at the end of 2022.

The Reserve Bank of India (RBI) has proposed tighter norms for the treatment of wilful defaulters, requiring banks and lenders to examine all accounts with outstanding amounts of Rs 25 lakh and more to identify deliberate non-repayment of loans. The...

The High Court in its recent order granted time to the company to put forth additional submissions to Union Bank's review committee for a fair and just decision on the matter. The bank's review committee had declared PP Jewellers as a wilful default...

Banks have come together to reject a proposal by corporate lobbies to club borrowers tagged as 'fraud' accounts with 'wilful defaulters'. Senior bankers, who had discussed the suggestion over the last few weeks, arrived at the decision while prepari...