.........The source said that as per RBI guidelines, it would have to be proven that the borrower had diverted funds which he taken from the bank and is not paying up despite having the ability to pay. “If we are sure on these two points, then the bank will declare Mallya a wilful defaulter,” the source said.........
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1 comment:
It is sad that SBI is still thinking of calling KFA loan as a wilful default. The definition (if the reported news is correct) of a wilful defaulter is not just for diverting of funds lent to the borrower. Even if he has used it in the rightful way and he has not repaid the loans despite all efforts to help him by way of restructuring etc., he/she/ or the company can be declared as a wilful defaulter. It is just playing for some time before it would write off the loan and allow Mr Vijay Mallaya to go scot free (as he has other companies which give good business to the banks). It is poor banking ethics after all that SBI has not classified it as a wilful defaulter.
People at large are watching the KFA case and RBI should step in and make its stand on loans to corporates like KFA etc.
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