Cash credit facility defauly


Dear Respected Members,

I have been running SSI Unit for the past 10 years. One of the nationalised bank approached me and offered 3.5 lacs cash credit facility against my stocks. After one year or so they enhanced another 3.5 lacs. I was doing well. But during reccession 2010 my business started falling down. All my main customers went in bad shape. I tried hard since then and I could not do well. During these period I was paying my debit interest regularly. When my stock went low and tried to show the actual stock to the bank. Where in the field executives advised me to give false stock worth 10lacs so that my 7 lac limit will be maintained. They also told me if I show low stock then my limit would become zero and I must pay full amount in one shot. Fearing this adverse suituation I showed false stock till march 2012. But my business went from bad to worse that I could not do anything for the last 6 months. With great difficulty I paid 3 months debit interest. But since september 2013 I could not mobilise any fund. I waited till november but nothing happened in my business. Now bankers are asking for three months ineterst which I could not pay.The AGM told me that they can initiate a criminal proceedings on me. Can they do that? My intention is not to cheat bank. I wish to clear all my dues to the last rupee. What I need is time. What I should do? Please suggest me.

sathya

 
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Proprietor

can u send me scanned copies of statement of accounts? sujnyap@gmail.com. I am facing the same prob. the difference is you have submitted false stock statement and i have refrained from doing so. these people are the most white collar offenders of law. check whether they have applied/debited correct interest. interest calculation is not a rocket science. we have learnt it in school. so first check your statement of account. just a glance at it wont help. you will have to edit it. mail me and i will help you with further solution.

 
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Please donot blame your banker as they are also commercial organization like yours and in the present scenario while you obtained the loan and because of your wrong selection of your customer or any other reasons the money taken in cash credit has gone waste.

The Bank definitely can file criminal case against the dis honest borrower but usually they donot file criminal cases because that is a surety that their loan will not be repaid after filing the complaint as whatever residue is available with you will be snatched by the police secondly when you have filed the stock statements the bank officers are also verifying the same so primary concern of the banker is refund of their own advances provided to you.

My most sincere that too at the moment free advice  would be clear total debt of the bank other wise with interest, interest over interest, penal interest, inspection charges, litigation charges would be longer then the tail of sh Hanuman Ji.

One parting advice the sooner you clear your dues better would be as the present staff who knew that you are filing wrong stock statement will try to clear ever thing before they are posted out. GET GOING.

 
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