Banking Secretary Gurdial Singh Sandhu on Tuesday asked banks to take action against Kingfisher Airlines by declaring the airline as wilful defaulter.
Once declared wilful defaulter, criminal proceedings can be initiated against promoters and directors of the company.
Besides, they would not be allowed to raise fresh funds from banks and set up new ventures for five years.
Earlier, the government had said some banks have initiated the process of declaring debt-ridden Kingfisher Airlines as wilful defaulter.
As per RBI guidelines, it would have to be proven that the borrower had diverted funds which he taken from the bank and not paying up despite having the ability to pay.
The consortium of 17 banks, led by SBI, has an outstanding debt of about Rs 4,022 crore from the now-grounded carrier.
12/08/14 ZeeNews
To Read the News in full at Source, Click the Headline
Once declared wilful defaulter, criminal proceedings can be initiated against promoters and directors of the company.
Besides, they would not be allowed to raise fresh funds from banks and set up new ventures for five years.
Earlier, the government had said some banks have initiated the process of declaring debt-ridden Kingfisher Airlines as wilful defaulter.
As per RBI guidelines, it would have to be proven that the borrower had diverted funds which he taken from the bank and not paying up despite having the ability to pay.
The consortium of 17 banks, led by SBI, has an outstanding debt of about Rs 4,022 crore from the now-grounded carrier.
12/08/14 ZeeNews
