THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a), (b) & (d): Reserve Bank of India (RBI) collects on quarterly basis, the information on
Wilful Defaulters (non-suit filed accounts) of Rs. 25 lakh & above from Banks. Besides RBI, the
Credit Information Companies, including Credit Information Bureau of (India) Limited (CIBIL),
are maintaining a database on suit filed accounts, including willful defaulters with Rs. 25 lakhs
and above. The details of such accounts as on 313t March 2012 in Public Sector Banks are as under:
(Amount in Rs. Crore) Suit Filed Accounts Non-Suit filed Accounts Nos. Amt. Nos. Amt.
Nationalised Banks 2451 9510.89 157 683.12
State Bank Group 1085 7014.40 981 3491.58
Total Public Sector Banks 3536 16525.30 1138 4174.70
(Source: RBI)
(c): A `wilful default` would deemed to have occurred if the unit has defaulted in meeting its
payment / repayment obligations to the lender when the unit has:
# the capacity to honour the said obligations;
# has diverted the funds for other purpose;
# not utilized/ siphoned off the finance from the lender for the specific purposes for
which finance was availed of, nor the funds are available with the unit in the form of other
assets,
# disposed off or removed the movable fixed assets or immovable property given by him or
it for the purpose of securing a term loan without the knowledge of the lender.
(e): A copy of list of willful defaulters, (non-suit filed accounts) and list of wilful defaulters
(suit filed accounts) are forwarded to Securities & Exchange Board of India (SEBI) by RBI and
CIBIL respectively, in order to prevent them to access the capital markets. No additional
facilities are to be granted by any bank / Fl to the listed wilful defaulters.
The legal process, wherever warranted, against the borrowers / guarantors and foreclosure of
recovery of dues should be initiated expeditiously by the banks. The lenders may also initiate
criminal proceedings against wilful defaulters, wherever necessary.
Other legal options available to banks for resolution of NPAs/recovery of loans, are action under
Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest Act,
2002 (SARFAESI Act, 2002), recourse to Debt Recovery Tribunals (DRTs) and Lok Adalats.
