Recovery Division, Head Office

7, Bhikhaiji Cama Place, New Delhi

Dt. 10.04.2017
TO ALL OFFICES

In modification of Recovery
Division circular 22/2015
dated 31.08.2015 on wilful
defaulters

RECOVERY DIVISION CIRCULAR NO. 20/2017

WILFUL DEFAULTERS- ACTION

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Bank’s guidelines regarding identification and declaration of wilful defaulters & action there
on were last circulated vide Recovery Division circular 22/2015 dated 31.08.2015.

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The feedback received from the field indicates that the field functionaries are not fully
aware as to how they can view the details of wilful defaulters declared by our Bank and
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also other Banks. Further list is not being viewed at the time of processing of credit
proposals

In view of the above, Para 10 of circular no. 22/2015 dated 31.08.2015 has been amended
as follows.

10. AVAILABILITY OF NAMES OF WILFUL DEFAULTERS

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10.1 The list of wilful defaulters of our Bank is uploaded on the Bank’s website and can
be viewed through link https://www.pnbindia.in/wilful-defaulters.html in order to
ascertain whether the name of prospective borrower/guarantor appears in the list of
wilful defaulters of our Bank.

10.2 In order to ascertain whether a particular borrower/guarantor appears in the list of

wilful defaulter/ defaulter in any of the Banks, field functionaries may visit the
following links.

S.No. Particular Web link

1 Suit Filed wilful defaulter/ https://suit.cibil.com/
defaulter for all Banks
2 Non Suit Filed wilful defaulter/ https://www.cibil.com/nonsuitfiledcases/
defaulter for all Banks
Recovery Division, Head Office
7, Bhikhaiji Cama Place, New Delhi

Data pertaining to suit filed cases is accessible to all, whereas data of non suit filed cases
can be viewed with help of user Id & password provided by the CIBIL.

As such field functionaries, at the time of processing of credit proposals, are advised to
check the credentials of the prospective borrower/guarantor in the list of wilful defaulter of
Rs 25 lacs & above on the website of CIBIL as mentioned at Para 10.2 and invariably
mention the same in the credit proposal.

Further Annexure II (Format for examining & reporting cases of wilful default of Rs 25 lakh
and above) has been revised with addition of column E and same is appended with the
circular.

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All concerned are requested to note the guidelines for meticulous compliance.

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(A K AHLUWALIA) (J K GUPTA)
GENERAL MANAGER GENERAL MANAGER
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 Annexure II
 Annexure II
To
Dy. General Manager
HO, Recovery Division
New Delhi

FORMAT FOR EXAMINING & IDENTIFICATION OF WILFUL DEFAULT IN NPA A/cs

INVOLVING AMOUNT OF Rs.25 LAC AND ABOVE:

PART A: PRELIMINARY INFORMATION

(Amount in Lacs)
1 Branch / Circle office &
FGMO
2 Name of the party
3 Date of sanction/latest
review/renewal, if any

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and Sanctioning
Authority
4 Activity

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5 Nature of facilities &
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amount sanctioned
6 Date of NPA & Amt.
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7 Whether Consortium (If
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Yes, Name of the Lead

Bank, our percentage
share and position of
Wilful Defaulter by any
member bank):
8 Position of securities: PRIMARY SECURITIES
Primary: Particulars Market Realizable Documents
Value at value as on relied upon
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the time of __________ (Stock

sanction Statement/BS
_________ etc.)
Plant &
Machineries
:

Stocks:

Book
Debts:

Others

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 (Specify
nature of
security):
9 Position of securities:
Collateral COLLATERAL SECURITIES
Particulars Market Value Realizable Documents relied upon
at the time of value as on (Stock Statement/BS etc.)
sanction __________
_________
Land &
Building

10 Guarantors
Name Net Means IP Present Net Means
(At the time

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of sanction)
as per CR

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11. Whether unit is running

or not?
12 If stock is missing,
since when and
position of FIR, if
lodged
13 Status of suit filed
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14 Detail of associate
concerns, position of
a/cs, if available
15 Brief History including
steps taken/to be taken
to recover bank‟s dues
16 Has any staff side case
been initiated against
the erring officials? If
yes, details thereof.

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PART B: IDENTIFICATION OF EVENT(S) OF WILFUL DEFAULT BY THE BORROWER

17 Reason for treating the account as a case of wilful

default:
(a) CAPACITY TO PAY:
a) Whether it has the capacity to honour the said
obligations? On what grounds it is considered
that unit/ borrower has capacity to pay?
b) Whether Non-payment of the dues is
deliberate despite adequate cash flow and
good net-worth.
ENCLOSE PROOF:
1.

2.
(b) DIVERSION OF FUNDS:
(i) Not utilized the finance for the specific purpose

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for which the finance was availed/diverted the
funds for other purposes, if yes,
a) Purpose for which finance was availed

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b) Purpose for which finance has been
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diverted, if available
c) Amount of funds diverted
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d) Basis of identification of diversion
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e) If stocks depleted, whether there is

corresponding increase in any other
Current Assets
ENCLOSE PROOF:
1.
2.
(ii) DIVERSION BY WAY OF ROUTING OF
FUNDS THROUGH ANY BANK OTHER
THAN THE LENDER BANK OR MEMBERS
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OF CONSORTIUM WITHOUT PRIOR

PERMISSION OF THE LENDER

a) Name of the Bank through which the funds are

being routed (Mention total sales as reported in
the last balance sheet available, and credit
summation in the account during the period):

ENCLOSE PROOF (such as statement of

accounts, Correspondence with the borrower and
the Bank to close the account):
1.

2.

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(c) UTILIZATION OF WORKING CAPITAL FUNDS
FOR LONG TERM PURPOSES:

a) Amount of working capital utilized for long term

purposes
b) Specify assets created as per Balance Sheet
ENCLOSE PROOF:
1.
2.
3.
(d) TRANSFERRING BORROWED FUNDS TO THE
SUBSIDIARIES / GROUP COMPANIES OR
OTHER CORPORATES BY WHATEVER
MODALITIES:

a) Name of Subsidiary/ Group Company:

b) Amount of funds transferred to
subsidiaries/group companies/other corporates

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ENCLOSE PROOF (such as enclose balance
sheet or any other financial documents)
1.
2.
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3.
(e) INVESTMENT IN OTHER COMPANIES :
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Investment in other companies/ indebt/ equity

instruments without approval of lenders {please
give details}
a) Name of the Company in which investment
made:
b) Modus Operandi:
c) Amount invested in the said Company:

ENCLOSE PROOF:
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1.
2.
3.

(f) SHORTFALL OF DEPLOYMENT OF FUNDS:

a) Shortfall in deployment of funds vis-à-vis
amount disbursed {please give details of
modus operandi}:
b) Amount disbursed:
c) Amount deployed:
d) Shortfall:
ENCLOSE PROOF:
1.
2.

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(g) SIPHONING OFF FUNDS:
a) Siphoning off funds/funds not available in the
unit in the form of other assets
b) Amount Siphoned off:
c) Name of Beneficiary to whom funds siphoned:
d) Modus Operandi:
(h) UNAUTHORIZED DISPOSAL/REMOVAL OF THE
CHARGED ASSETS:
a) Disposal/removal of securities given for the
purpose of securing credit facilities including
term loan without bank‟s knowledge:
b) Security disposed/removed:
c) Amount involved:
ENCLOSE PROOF:
1.
2.

PART C: IDENTIFICATION OF PERSONS/BORROWERS WHO ARE WILFUL DEFAULTERS

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18 Name of Borrower:
Contact Number:

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Address:
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Email Address:
19 Name of Partners:
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Contact Number:
Address:

Email Address:

20 Name of Whole Time

Director(s)/Key Managerial Director:
Contact Number:
Address:
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Email Address:
DIN No.
21 Name of Promoter Directors at the
time when incident of Wilful Default
happened:
Contact Number:
Address:

Email Address:
DIN No.
22 Name of Nominee Directors:
Contact Number:
Address:

Email Address:
DIN No.
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23 Name of Independent Directors:
Contact Number:
Address:

Email Address:
DIN No.
24 Name of Karta (in case of HUF):
Contact Number:
Address: Email
Address:
25 Name of Trustees (in case of
Trust): Contact Number:
Address: Email

Address:

26 Name of Guarantor/Corporate
Guarantor (Guarantee furnished by
group company):
Contact Number:

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Address:

Email Address:

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PART D: IDENTIFICATION OF EVENTS OF DEFAULT FOR GUARANTOR
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I) FOR CORPORATE GUARANTORS

In case Guarantee furnished by the Company within the group has not been honoured on
invocation

27 Name of the Corporate Guarantor

28 Date of Guarantee Deed (attach proof)
29 Date of Notice Invoking Guarantee by bank
30 Response/Reply, if any received by the bank
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II) INDIVIDUAL/NON-CORPORATE GUARANTORS

31 Name of the Guarantor/s

32 Date of Demand Notice/Recall Notice to the
borrower by the bank.
33 Date of Notice Invoking Guarantee by bank
34 Response/Reply, if any received by the bank

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Events of Default

Whether the guarantors refused to comply with the demand of the bank, despite Yes/No having
sufficient means to make payment of the dues
Justification for the guarantors having sufficient means but not making payment
(attach proof thereof- CR etc.)
Whether undertaking/Guarantee Deed/Agreement of Guarantee incorporates the Yes/No clause
that bank can take action for Wilful Default

PART E: ACTION FOR WILFUL DEFAULT

Date of 10 days notice of wilful default

Date of representation received from the
Borrower/other obligants ( Directors etc)

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Date of Bank’s reply to the representation

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It is certified hereby that the events of Wilful Default and list of Wilful Defaulters have been
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correctly compiled after duly verifying the details thereof.
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Branch Manager

Recommendations of Circle Head:

Circle Head
Circle:_________

Recommendations of FGMO:
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FGMO
FGM:_______

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