Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Banking & drt

(Querist) 05 November 2017 This query is : Resolved 
Sir ,

My son had taken loan from a private bank. The Bank sanctioned LAP(SME) loan. In the sanction letter they had shown primary security of working capital to be stokcs 75% and debtors 60^
and in case of term loan they have shown Industraila Gala & Mahcinery.Total loan is 42 lacs.
I am a guarantor. I gave me residential flat for security.
But however after some time we found that the bank had actually sanctioned Simple LAP by mortgaging residential flat and Industrial Gala (Valuation of Industrial gala is Rs.39.99 lacs and that of residential property was Rs. 30.50 lacs Total of 70 lacs and they had given 60% of that . Thus bank had mis represented and committed a fraud.
Because it was ordinary LAP. I could not claim stamp duty exemption for EMT and I was also eligible for subsidy that was also lost.
In my grievance letters I asked the bank to rectify the mistake but bank never replied.
since the factory could not be run properly it had to be shut down. So my account was declared NPA. My claim is that I cannot be declared NPA since the bank has cheated me and has to rectify the error. I approached DRT my SA was dismissed stating that they were only meant for deciding any action if it is after application of SARFASEI and act done prior to sanctioning and disbursal is not with in their ambit what should I do ? can any one guide me.
Rajendra K Goyal (Expert) 05 November 2017
If you noticed that Bank has sanctioned wrong limit, you should have switched to other Bank after closing the limit.. Now the account is NPA, you have not paid back the loan, your property is mortgaged, there seems negligible merits in your claim by finding technical faults in the sanction.

You are literate, you have signed the documents with full knowledge.

Bank has right to recover its money from mortgaged property otherwise.
rajeev sharma (Expert) 06 November 2017
sir your claim is not substantiated by any documents hence no comments may be offered. Pl check the copy of your loan application form, agreement executed with bank. Whether these were duly filled at the time of submission / execution? See under what scheme you applied for loan. If you are able to collect sufficient evidence that these were not of LAP then you have a ground. If all these document were of LAP and you knowingly took loan from bank then now you can not take any other stand. When you got knowledge that it was not a SME loan but LAP loan and what you did after that , if the bank was not ready to change the loan into SME loan what prevented you from switching to another bank. The court is very much right in holding that SA may only be filed against an action under SARFAESI Act.


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