Maharashtra has the highest number of wilful default cases, where banks or financial institutions have initiated legal action against errant borrowers, who owe more than Rs 25 lakh, according to data available with the Credit Information Bureau of India Ltd (CIBIL). As on December 31, 2017, legal action has been launched in at least 6,505 wilful default cases across the country. Out of these, 1,437 cases were registered in Maharashtra, followed by Delhi with 704, West Bengal with 593 and Gujarat with 439 cases. In terms of value, the total amount of suit filed for wilful defaults as on December 31, 2017 stood at Rs 73,382 crore. The state accounts for over one-third or Rs 28,387 crore of wilful defaults where legal action has been taken with Delhi at Rs 7,610 crore and West Bengal at Rs 6,775 crore, said CIBIL data. The Reserve Bank of India (RBI) has defined wilful default as one where the unit or borrower has defaulted in meeting payment or repayment obligations to the lender despite the capacity to honour these commitments. It also includes those who have siphoned off or not utilised funds for the specific purposes for which finance was availed of. Borrowers who have disposed of or removed movable fixed assets or immovable property given for the purpose of securing a term loan are also wilful defaulters. State-owned banks have reported wilful defaults of Rs 93,357 crore involving 7,564 borrowers as of September 2017.
