Some banks, which have extended credit to Kingfisher Airlines have initiated the process of declaring debt-ridden company as wilful defaulter. Confirming this, financial services secretary G.S. Sandhu said some banks have already started the process. Once declared wilful defaulter, criminal proceedings can be initiated against promoters and directors of the company. Besides, they would not be allowed to raise fresh funds from banks and set up new ventures for five years. He said this will be an individual decision of the banks concerned. The banks would have to prove that the borrower had diverted funds which he had taken from the banks and not paying up despite having the ability to pay. The consortium of 17 banks, led by SBI, has an outstanding debt of about Rs 4,022 crore from Kingfisher Airlines. United Bank of India was the first to initiate the process of declaring Vijay Mallya and three other directors as wilful defaulter. The consortium led by SBI has also initiated the process of recovery.