Regarding CGTMSE loan
Aanshumaan
(Querist) 22 March 2016
This query is : Resolved
Dear Sir, I want to inquire as to what proceedings could be undertaken by Public Banks in case the whole amount of loan is covered under CGTMSE (Credit Gurantee Trust for Medium and Small Enterprises). The borrower is in the medical equipment manufacturing industry due to unavoidable circumstances the company had to be closed. The loan was granted under msme.Now the bank has moved DRT and is asking the directors for there personal assets details.Please Reply at the earliest..!!! Aanshumaan
Devajyoti Barman
(Expert) 22 March 2016
What advice exactly are you looking for>
If your loan a/c is declared NPA and security was made while taking loan then the Bank can proceed to attach and sale the security to recover due amount.
Aanshumaan
(Querist) 22 March 2016
Sir I have not given any security to the bank at the time of availing loan neither did they ask for it. Now since it has become NPA they have moved the DRT where they have asked DRT to ask for the assets of the directors. So that they can auction it for recovery. I want to know if it is possible for OTS.
Devajyoti Barman
(Expert) 23 March 2016
Yes, it is possible. You can take loan and later avoid repaying it on the pretext of lack of money.The public money is to be rapid , if not it has to be recovered by due course of law.
Rajendra K Goyal
(Expert) 23 March 2016
The query was posted by you at :
http://www.lawyersclubindia.com/experts/Regarding-cgtmse-loan-scheme-for-recovery--590411.asp#.VvI9OuJ97IU
It was answered as:
CGTSME covered loan does not mean Bank would not proceed to recover the loan, it would proceed normally to recover its dues.
CGTSME cover compensate the Bank to 60% to 75% or as per scheme, in case the loan is defaulted. Any recovery in defaulted amount need to be shared with CGTSME in the same % by the Bank.
Bank can proceed to recover from directors in case of default of CGSME loan also.
Dr J C Vashista
(Expert) 25 March 2016
No reply for repeated query.
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