Question

Which of the following scenarios best illustrates a Willful Default rather than a Fraud?

Q: Answer-Which of the following scenarios best illustrates a Willful Default rather than a Fraud?

Why Options A, B, D, E are confusing These options all involve criminal deception, fabrication, or impersonation, which fall directly under Fraud. Why C is correct A Willful Default occurs when a borrower has the capacity to repay sufficient fundsliquidity but deliberate non-payment occurs Not Returning What I Owe.

A A borrower submits forged financial statements and fake land title deeds to obtain a loan limit of ₹50 Crore.

B A borrower generates fake vendor invoices and shell company bank accounts to siphon off loan proceeds before absconding.

C A company has ample cash reserves and liquid investments to pay its loan installment, but intentionally defaults to pressure the bank into restructuring its debt.

D A promoter impersonates a government official to secure an uncollateralized loan sanction.

E A promoter impersonates a government official to secure an uncollateralized loan sanction.

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