one time settelement


my  client obtained loan from a co operative bank .bank file case in 2003 in co operative court. case is still pending . meanwhile we  send letter to that  co operative bank and told that we are willing to close this matter with in the  rbi ots  guidlines.bank did not reply  so we send 5 percent of  npa amount  before ots  closing date of this year( which is given by state government) . now  ots closing date is over and bank is not ready for rbi guidlines. but they have done ots  for other peoples ( means they accepted ots policy).

 now what to do ?

can court direct for ots?  or what step should be take   .can we file  criminal case.

 please see    supremecourt case       M/S Sardar Associates & Ors. vs Punjab & Sind Bank & Ors. on 31 July, 2009

 
Reply   
 

you need to write to the RBI for the same and ask them to intervene in it. Since bank is regulated by RBI guidelines. Thus, it is advisable to approach them first.

 

you cannot take OTS as a matter of right. it is the discretion of the lender whether to give this facility to the borrower or not.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

 
Reply   
 


ADVOCATE

Firstly bring this fact to the Hon'ble Co-operative Court and the RBI, and thereafter initiate necessary process.

 

Regards

 
Reply   
 

thanks for reply .

in the circular of RBI  for co operative banks   [ Ref.UBD No.BPD.1298/09.140.00(OTS)/2002-03 dated February 12, 2003]    in section 4 written that  ' The bank should follow the guidelines for compromise settlement of all NPAs covered, without discrimination among borrowers'. banks accepts ots proposal of others  but in that cases also they didint follow  rbi guidelines (regarding doubtful  and substandard conditions).   it is clear that from guidlines  there is no interest after account is in doubtful  conditions .bank has  taken   interest  of 8 %   after doubtful condition also .we submitted rbi guidlines in court.

matter is in court then how can  we complaint to rbi  omdusman

 
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