What happens to a willful defaulter?

India’s top 25 wilful defaulters owed a total of Rs 58,958 crore to various lenders as of March 31. A wilful defaulter is an entity that has defaulted in meeting its payment or repayment obligations to the lender even when it has the capacity to honour them. Once classified a wilful defaulter, the entity can face legal action initiated by the lender and does not get any more additional facilities from banks/lenders. Such an entity is also debarred from accessing institutional finance and floating new ventures for five years from the date its name appears as a 'wilful defaulter' on the list issued by the RBI. It cannot be on any board.