1. In view of the disruptions caused due to the COVID-19 pandemic, the Board of the Corporation held on 12.08.2021 has decided to conduct a Loan Settlement Adalath.

Application Form

2. Eligibility. All units, where the asset classification is NPA as on 30.06.2021, including KSEDM cases, are eligible for Compromise Settlement (CS) under Loan Settlement Adalath 2021. Units which were sanctioned CS earlier (including under Adalath 2018 and Mini Adalath 2020) will also be eligible for fresh CS under the Adalath 2021.

3. Time frame for remitting the approved CS Amount by promoters. Loan Settlement Adalath 2021 will be only for borrowers who are ready to remit the Settlement amount on or before the specified date. The settlement allowed under Loan Settlement Adalath 2021 will be one time measure. No extension of time will be allowed and the Adalath settlement allowed will stand cancelled automatically if the full amount is not remitted on or before the specified date. Once the Adalath period is over and if the amount is not settled, the amount remitted, if any, shall be adjusted in gross recovery. The Adalath approved amount shall not be a reference for any of the future settlement proposals.

4. Processing fee for registering CS application. The application for Compromise Settlement in prescribed format needs be registered by BO only if processing fee for Compromise Settlement has been collected from the applicant, in advance, as follows:

4.1 Processing fee once remitted shall not be refunded or credited in the loan account, even if CS is not sanctioned.

4.2 Fresh CS application shall be considered only on remittance of processing fee and CS advance applicable at the time of filing the request.

5. Advance payment for CS. Compromise Settlement application shall be processed by BO only if a minimum of Compromise Settlement advance computed at 1% of the principal outstanding or balance outstanding whichever is lower is remitted. The advance amount so remitted will be considered towards the final settlement amount.

6. Incentive for Early Remittance. In order to achieve the objective of prompt collection, 10% discount on Adalath approved CS amount (as on 31.12.2021) shall be allowed, subject to collecting minimum P+OE outstanding in S2, D1 & D2 category loans, if the loan accounts are settled on or before 30.11.2021.

7. Delegation of Powers. The Board delegated the settlement powers to Task Force Committee (TFC) with its approved proposal being vetted and counter-signed by a retired Judge. The decision of the Judge shall be final.

8. For all loans which are eligible for Settlement under Adalath, relieving of liability of co-obligant/ co-obligants can be considered if they remit the Adalath approved amount of the unit/ concerned loan account. Task Force Committee is delegated to take a decision on relieving co-obligant/ co-obligants/ promoters in such cases.

9. The statutory dues, RR charges, OE incurred later, etc if any, has to be collected extra.

10. Pending court cases against the Corporation, if any, have to be withdrawn/ settled by the promoters before release of documents. Legal expenses incurred have to be collected from the parties concerned.

11. The basic approach for the Settlement shall be practical, non-prejudiced and non-discriminatory. CS amount as per formula is the minimum amount to be collected. Efforts should be made to get a higher amount than the minimum norm amount.

12. Schedule for conducting the Adalath is as follows:

Date	Remarks
12 Aug 2021	Approval of the scheme by the Board
24 Aug to 10 Sep 2021	Accepting applications for Adalath
24 Aug to 20 Sep 2021	Processing of applications at BOs and ZOs
01 Sep to 25 Sep 2021	Processing of applications at HO
27 to 30 Sep 2021	Adalath week
01 to 05 Oct 2021	Issue of CS communication by BOs
30 Nov 2021	Settling with 10% discount on the Adalath approved CS amount
31 Dec 2021	Settling at Adalath approved CS amount
03 Jan 2022	Cancelling CS and resuming recovery actions

 

Sd/-
Chairman and Managing Director