What is Wilful Default..

According to Reserve Bank of India (RBI) norms, a wilful default is when an entity defaults in its payment obligations to lenders even if it has the capacity to pay and does not use the funds for which the loan was availed or diverts those.

If the borrower uses short-term working capital funds for long-term purposes not in conformity with the terms of the sanction or deploys the borrowed funds for creation of assets other than those for which the loan was sanctioned, it is construed as diversion or siphoning of funds.

Kingfisher is at the number one spot according to data compiled by the finance ministry on defaulters.


The list.. as on August 2014

Kingfisher Airlines     Rs 6,500 crore
Winsome Diamond  Rs. 3,243 crore
Electrotherm India   Rs. 2,653 crore
Corporate Power     Rs. 2,487 crore

Sterling Biotech      Rs. 2,031 crore
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