Question
A wilful defaulter or any entity with which a wilful
defaulter is associated , is ba rred to get any additional credit facility from a lender for a period of _____ ÂSolution
The penal measures mentioned below shall be implemented by the lenders. Â
- i. No additional credit facility shall be granted by any lender to a wilful defaulter or any entity with which a wilful defaulter is associated. Â
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- ii.The bar on additional credit facility to a wilful defaulter or any entity with which a wilful defaulter is associated shall be effective for a period of  one (1) year   after the name of wilful defaulter has been removed from the List of Wilful Defaulters (LWD) by the lender. Â
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- iii. No credit facility shall be granted by any lender for floating of new ventures to a wilful defaulter or any entity with which a wilful defaulter is associated for a period of five (5) years after the name of wilful defaulter has been removed from the LWD by the lender. Â
- iv. Wilful defaulters or any entity with which a wilful defaulter is associated shall not be eligible for restructuring of credit facility. Subsequent to removal of the name of wilful defaulter from the LWD, the wilful defaulter or any entity with which a wilful defaulter is associated shall be eligible for restructuring, subject to the provision contained at (ii) above.
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