Legal Question in Banking Law in India

Dear sir,

I am a gurantor of a cash credit loan of rs. 8.5 lacs of M/s. Raj Enterprises (Borrower) with United Bank of India. The Borrower is not paid the interest from 30.6.2008 till date. Bank is not declard the account as NPA till 30.6.2010. They decalred as NPA on 30.6.2010, and demanded to pay principle + interest of Rs. 12.25 lacs. Borrower is lost all his money in business and not wilful defaluter. I have to settled the money. Bankers issue notice as per SRFAESI rules. As a gurantor, I am ready to pay around 7 lacs to bank. As per RBI guidelins NPA account will be charged simple interest of 6 % of ledger amount till date of settlement. Ledger balance is 9.01 lacs on 30.6.2008 i.e. come around 9.95 lacs. but bank demanded 12.25 lacs. I want bank to sacrifice some amount. What can i do? whom i contact for sacrfice and One time settlement? pls advice


Asked on 1/31/11, 12:27 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Appeal to the chairman. Also be in touch with local bosses personlly and try to move them to view your case sympathetically. After all it is the local officers who have to process your request for one time settlement at an amount less than the book balance.

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Answered on 2/01/11, 5:54 am


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