Hello Mr. VM Dahake,
I really appreciate your reply. There have been several proceedings in the case as the post was around 2 months ago..
1) Bank has again proceeded with section 13-2 notice and the previous representations still remain intact. Does it sound viable to again send notice without considering any of the greviances put up by borrower and just mentioning "Considering your problems sympatheically"
2) Also, I had read somewhere that "That before declaring NPAS, bankers have numerous duties to perform including rehabilitation not only once but multiple times" as quoted by R.B.I guidelines. They havent adhered to this too..Kindly suggest
Coming on to to reply --
3) Best method is to keep approaching the bank to work out a reasonable One Time Settlement proposal, harping on the inadequacy of cash flows to service the debt. You may also point out other liabilities of the unit to the bankers. >>> We had already moved towards having O.T.S and asked the bank to mainly provide us moratorium along with other factors which wasnt provided in initial phase for the project and this has been also major cause for such bad debt. The bank opted out to back out after good amount of funds had been deposited as mentioned earlier and instead, preferred to move with further proceedings.
4) It is advisable to defer paying anything to the bank till bank agrees for OTS / reschedulment or some arrangement in writing. Otherwise money paid will get adjusted in penal interest, keeping liability at the same level. Liquidity will help you to better negotiate with the bank as also go for legal options effectively. DRT will insist for some payment to grant any relief, in case you have to approach DRT against SARFAESI notice / other Recovery proceedings at a later date. Bank is also in need to keep account standard as at year / HY end >>> Yes, totally agreed as this has been suggested by others too because we are very much present in such stage where liquidity is not much and funds are required to meet up with recurring expenses for the project too for which financial assistant had been take. Also, We could not any sign of relief now from bank as they had opted out of settlement. Thanks for the advise
5) Since value of security is much more than dues, it is not advisable to delay. With liquidity and security, try to give a proposal to make payment against release of individual securities. >> Not much of liquidity
Looking forward to your valuable suggestions