Bank Filled a case to pay loan which was taken under CGTMSE scheme.
Posted 3 years ago
I approached Corporation Bank in the year 2016 for MSME loan under CGTMSE to start a micro inddustry.Bank Manager advised to bring Govt regisred buliding lease agreement of 7 years inorder to process loan application. I did rental lease agreement on 28/06/2016 for 18,000rs as rent per month and by paying 1,50,000rs as advance. I submitted a copy of lease agrerment other documents to the manager seeking loan sanction.But manager delayed loan sanction for 8 months,for this I got financil loss of 1,44,000 rs,finally Term loan(11,00,000rs) given on 02/03/2017.I requested to relese working capital ,Again delayed and released working capital of 8,00,000rs on 29/06/2017 .Again due to delay 3 months fincial loss of 54,000RS .On 02/07/2017 GST tax interduced due to this the raw metarial procurement got delayed. Before starting industry itself I got loss of 1,98,000rs due to difficiency in bank services .
I was an unemployee and thought to be self employed and to creat job opprtunites to others.So I approched Bank for loan under CGTMSE. the objectives of CGTMSE help financil institutions achieve their lending goals to MSME market without any worries.This scheme provide the assurance to the lenders/Banks that in case of default by the industires a guarantee cover will be provided by trust.
The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender.
Inorder to cover under CGTMSE a borrowers need to pay yearly Credit Facility Annual Guarantee Fee of 1.00% of total loan availed from the bank.,which I am paying and it is also mentioned in the application form that the loan is under CGTMSE coverege. But Bank palintiff supressed the facts of loan scheme.
Saveral times I requested bank to issue Loan sanction letter to avail subsidy of 35% from District Industies, but Corporation Bank did not issue loan sanction letter to me untill today.
After 9 months mortrium perid I started paying installments. Unfortunetely micro industry became sick due to several reasons , such as difficency in delevering banking services ,financial loss occurred due to delay to sanction loan,GST interduction which effected many startup units/bussinesses and manpower problem .I could not run the unit more than 8 months as there was continous financial loss and I informed same to bank by email on 06/08/2018 .
With reagrd to this I reeived notices from bank and I replied and requested to take necessary steps as per the CGTMSE scheme as I availed loan under CGTMSE. But no intiatives have been taken by bank.
Bnk issued notice and taken unit machinery worth of 13,50,000rs( Purchase value 9,70000rs resved value) in thier possession to sell.On 23rd December 2019 bank tried selling machines in e-auction ,after selling Bank again cliams reminaing amount from CGTSME.
Untill today I am paying paying rents to the unit monthly 18,000 RS.Almost I paid more than 8,50,000 RS towards rens starting from July 2016 and till date.I am pying rents even after taking machinery ownership by pliantiff.Aapart from this there was loss of 7,00,000 RS to me which was spend on electrcial ,plumbing,water source,manpower training,manpoer wages,Marketing,sewing accessories and travel and transport expenses.Even though I am unemployee as a responsible person borrowing money from others and paying rents to protect bank property which was purchsed with term loan and under the possesion ownership of the bank.
Out of 8,00,000rs working capital I used only 2.75 lakhs.Even though 8,00,000rs in my hand hand I did not use.Some money Bank dedcuted from working capital with their own reasons.
I received notice from bank f asking to pay loan amount.But Every year I am paying CGTMSE yearly guaranty risk premium fee of 1.00% as per guidelines of the CGTMSE Trust.When it was brought to the notice of bank why need to pay annual fee to CGTMSE but bank says they have nothing to do with that fee as it was paid to CGTMSE.but the annual CGTMSE fee paid for the purpose of risk coverage.Loan sanctioned under CGTMSE scheme and in loan application it is mentioned that the loan is under CGTMSE coverage.
Bank suppressed all the facts such as Loan Scheme .annual risk fee paid to the CGTMSE by me,taking ownership of the machinery by bank ,selling macinery in auction by bank ,rents paid to the unit,loan sanction delay and the financil loss to me
Bank suppressed the real facts and misleading the Hon’ble court, this case is filed by the bank just after thought knowing fully well to get wrongful gain.
I am unable to go for job as I have lease agremnet and need to pay rents and to be available when ever Banks and courts calls me.It is effcting my livelyhood and finding hard to borrow money and pay rents even after 3.5 years.Bank ignoring the CGTMSE guidelines hide the facts about the CGTMSE scheme and filled a case in the court.
Bnk not showing much intrest to sell property immideitely as I am paying rents .Please advice ,can I request court to advice bank to pay rents as the property now owned by bank and can I ask to pay the rents paid to the machinery premises that I paid since machinery went in the hands of bank.
Please help me thank you for your help and time.
Please find out whether there are chances of getting stay by approaching High Court on technical grounds.