Declaration as a Wilful Defaulter: Compliance under RBI Master Circular

The Hon’ble Delhi High Court in the matter of Ansal Properties & Infrastructure Limited (Order dated 20.04.2021 in WP No. 570/2021) while relying upon the judgment of the Hon’ble Supreme Court in State Bank of India vs. Jah Developers Private Limited & Ors. (2019) 6SCC 787, has emphasized that in case of declaration as a ‘wilful defaulter’ under RBI Master Circular, the order of the Identification Committee has to be served on the borrower to enable it to file a representation before the Review Committee and subsequent to the representation made by the borrower, the Review Committee will pass a reasoned order on the representation, which must also be served upon the borrower.