Default - cgtmse loan
Ramesh
(Querist) 01 October 2015
This query is : Resolved
Dear Sir,
After passing out of my MBA, I started a manufacturing company and took a bank loan of 97 lakhs under CGTMSE scheme. Due to an unfortunate fire incident on 5th July, 2014 - our factory was gutted. As we defaulted on the loan, the case has now gone to DRT.
Some points on the loan: 1) Total Loan = 97 lakhs 2) Only primary security . No mortgage of property. No personal guarantor. Loan received under CGTMSE scheme. https://www.cgtmse.in/schemes.aspx
We are presently in very bad financial condition. We have no money to repay the bank.
What is the possible way out for me ? I have no money to even pay for legal fees.
Regards,
Ramesh Jain
P. Venu
(Expert) 02 October 2015
What was the guarantee furnished for the loan?
Rajendra K Goyal
(Expert) 02 October 2015
Loan was guaranteed under the Government credit guarantee scheme under CGTSME.
Whether Bank has lodged claim for recovery of default under the guarantee scheme in time and all criteria was fulfilled?
If so Bank would be reimbursed major portion of default by the corporation.
When you have nothing to pay, what Bank can recover from you?
What happened with the fire Insurance claim? Normally Bank loan is associated with the necessary fire insurance.
K.S.Srinivas
(Expert) 02 October 2015
Agreed with the expert R.K.Goyal.
Ramesh
(Querist) 02 October 2015
Thank you Sri Rajendra Goyal Sir and Sri. K S Srinivas sir.
1) There was no guarantee as it was under CGTMSE.
2) Bank has approached the CGTMSE trust.
3) Bank has also approached DRT. I have received notice from DRT for appearance. I shall do that next month.
4) Fire insurance was initially rejected. Then after pursuing , they are again coming for inspection next week.
I dont have assets and possess very little savings (around 2 lakhs as I lost everything in fire)
I am worried, can the Bank/DRT jail me? I cant pay back as I have no money. I never had any malafide intention. I left good job offer to start industry. now I am regretting it.
c.p.s. ramachary
(Expert) 03 October 2015
There is no possible way out for your problem. Bank is bound to sue you as condition for CGTMSE claim by the bank. If you have concealed any property including money beyond the reach of the bank, then the bank may seek for orders in DRT for bringing you to civil prision.
