Sebi Tuesday proposed to amend the regulatory framework for a category of Alternative Investment Funds, called the Special Situation Funds, to facilitate the acquisition of stressed loans and support the resolution of stressed assets in the Indian financial system
On June 8, 2023, the RBI said in a circular that banks can undertake compromise settlements or technical write-offs in respect of accounts categorised as wilful defaulters or fraud without prejudice to the criminal proceeding underway against such debtors.
Given that there are enough processes to identify wilful defaulters, the need for a specific process to identify wilful default seems superfluous, but perhaps an acquiescence to the principles of natural justice