You can talk to both the banks and can send them your one time settent proposal if it is approved you can do a one-time settlement.
Can I apply for OTS if my property price is higher than loan
Need to ask that can i apply for ots , my property is 35cr aprox and loan is 13 cr of one bank and 10cr of other bank
Asked 5 years ago in Business Law
14 Answers
They are constantly calling us and harashing us, what length they can do that, they are warning that we will come your home with 100people
Asked 5 years ago
Yes you can always make a 'without prejudice' offer to the bank
the threats given by banks are illegal
Dear Client,
Since your property value far higher than default, I don`t feel bank will agree for OTS. If matter is before DRT and you can offer the settlement before Tribunal.
One-time Settlement (OTS) schemes are available in all banks as an effort to deal with NPA levels. However, not every borrower is given this provision and whether to settle a bad loan account through OTS is on a sole discretion of the concerned bank based on some criteria and is not applicable in case of wilful defaults.
Waiver of Interest and other charges.
One-time settlement or OTS is a type of compromise settlement executed by the banks in order to recover non-performing assets (NPAs). OTS is a scheme where the borrower (the one who has defaulted) proposes to settle all the dues at once, and banks agree to accept an amount lesser than what was originally due. The banks settle the loan and waiver/write it off against a one-time instalment, thereby compromising on a portion of their profits.
1. If your loan account has become NPA, then the lending Bank will initiate SARFAESI Proceeding against you and shal issue demand notice u/s13(2) or the Act and then issue possession notice u/s13(4) of the Act.
2. Thereafter the lending bank shall take over physical possession of the mortgaged property through DM against application filed under section 14 of the Act.
3. As per RBI Circular, if the value of the mortgaged property is more than thye NPA amount, then no OTS proposal; is accepted since the Bank will be able to recover the said NPA amount by selling the mortgaged property.
4. Hence you shall have to creat encumbrances or disputes in connection with the said property to ensure that its stressed value is consedered as less than the OTS amount so that tyhe bank Manager can write to his authority that it will be beneficial for the Bank if the OITS proposal is accepted.
You can make application for OTS to bank
2) offer to pay outstanding dues in equated monthly instalments of 2 years or so
3) in alternative find buyer for your property . With bank consent property can be sold and loan repaid
record the threats
2) file police complaint of criminal intimidation under section 506 of IPC against bank officers who threaten you
1. If they have already initiated SARFAESI Peroceeding, then ultimately they will take physical possession of the said mortgaged property for selling it of to recover the dues.
2. You shall have to take steps like issuing letter u/s13(3A0 of the Act and thereafter file a SRAFAESI Application (S.A.) under section 17 of the Act before the DRT and attempt to stay on the sale of the saidproperty.
3. The said S.A. u/s 17 of the SARFAESI Act,2002 shall have toi be filed before the DRT within 45 days from the date of receiving it.
There no specific rules, it is vary from bank to bank.Generally 80% of the proprty value. Sanctioning of loan is own discretion of bank. You can try another bank, but must cosider interest rate.
OTS can only be applied for when the account has been declared to be a NPA
They can not adopt illegal means for recovery
If they are doing so then you can lodge a complaint for criminal intimidation against them.
They may at max resort to legal ways to recover the money.
Regards
You can talk to the higher officials of the bank and may offer to make one time settlement as you may have planned.
But it's the discretion of the bank to accept your offer.
You can issue a legal notice to them to refrain themselves from indulging in such illegal activities and to proceed through due process of law.
hello
the matter may be pending in the DRT. if not file a case in the DRT and request for an OTS. the DRT may grant you some time for OTS. the bank cannot adopt illegal measures to recover its loan.
regards
