Consequences of wilful default and penal measures for wilful defaulters are explained in this article. [You should consider reading Meaning of wilful defaulters and procedure for identification of wilful defaulters]
What are the Penal Measures for willful defaulters?
Names of wilful defaulters are made public. List of wilful defaulters is hosted on CIBIL’s website (you can access the database from here). By making names public, reputation of such borrower will be damaged in the society and no one would like to deal with such persons.
Apart from defaming the names of wilful defaulters, RBI has suggested following are the penal measures that banks should initiate against the wilful defaulters:
Banks can also consider publication of the photographs of willful defaulters (borrower/ proprietor/ partners/ directors/ guarantors etc.) following instructions issued by RBI. [Read what RBI says regarding publishing of photographs of wilful defaulters in newspapers]
Read this article about : Diversion of Funds and Siphoning of Funds
Criminal Action against Wilful Defaulters
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