• Bank stock statement & stock differ

Sir,
we were running a steel business. business loan taken from bank. but due to various circumstances we incurred loss and stopped the business. till now we are paying interest to the bank by taking loan from private people. but we are unable to pay anymore and submitted a letter to bank for one time settlement. but the bank is not considering it and continuously pressuring us to pay the interest. since it is business loan, the stock is not available due to heavy loss. banks threatening to take criminal action for wrong declaration of stock in stock statement submitted to bank.

our intent is to sell the property and make settlement to bank. can we avoid criminal proceedings by any way since we have given false declaration about stock availability. if yes kindly advise. your adivise is very much valuable for us.

thanks.
Asked 1 month ago in Criminal Law from Chennai, Tamil Nadu
Religion: Hindu
Nothing to worry. It is pure civil dispute and hence no criminal case can be filed on it.
The loan seems to be secured one.
if that is so then the bank can proceed to attach the security as per SARFASI Act.
So wait till the bank takes such steps.
After that you can seek for injunction in DRT.
Devajyoti Barman
Advocate, Kolkata
5229 Answers
54 Consultations
4.9 on 5.0
1) if you have given false declaration bank can file police complaint against you for cheating and criminal breach of trust 

2) if you fail to pay bank will issue you notice under section 13(2) of SARFAESI act and proceed with recovery proceedings 
Ajay Sethi
Advocate, Mumbai
23296 Answers
1220 Consultations
5.0 on 5.0
1. Bank is within its right to lodge a police complaint and file  FIR against you since the stock lying with you as per the stock register is hypothecated property of the lending Bank which have fallen short as per stock register.

2. You can fix a buyer and approach the Bank for entering in to a tripartite agreement between you, the Bank and the buyer by which the buyer will pay directly to the Bank the entire outstanding or the settled amount after which the Bank will handover the original title deed of the mortgaged property to the buyer and also issue a No-Due certificate to you.
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
232 Consultations
5.0 on 5.0
If you had obtained loan through false declaration then it amounts to an offence of cheating. It will be wise for you to repay the outstanding loan to the bank as it will be difficult for you to even obtain bail if it decides to file a FIR.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
You can inform the bank about your actual stock position and your desire to cancel the loan and are willing to discharge the entire loan amount by  one time settlement.
You can send this communication to the head office of the bank stating that the bank manager of the branch is not accepting this proposal and also that you cannot continue to pay the interest amount which is being insisted by th branch manager. 
You can endorse a copy to the branch manager also so that he would be in the knowledge of the correspondences.
This is one step which you can adopt before deciding to approach legally to this issue.
T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Criminal Lawyers

T Kalaiselvan
Advocate, Vellore
14069 Answers
127 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12123 Answers
232 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5229 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3535 Answers
130 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
437 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0