Advertisement

HindustanTimes Fri,25 Apr 2014

NBFC 'names and shames' guarantors for Jalandhar-based loan defaulters

PTI  New Delhi, October 30, 2013
First Published: 21:35 IST(30/10/2013) | Last Updated: 21:40 IST(30/10/2013)

Joining banks in naming and shaming wilful loan defaulters, non-banking finance companies (NBFCs) have also begun publishing photographs of such borrowers and their guarantors in the newspapers.

Advertisement


Tata Capital Financial Services Limited, an NBFC entity from salt-to-software conglomerate Tata group, on Wednesday published pictures of two persons in connection with default in repayment schedule of the Rs. 15-crore loan granted to Jalandhar-based Sameet Motors.

Neil Chahal and Charanjit Kaur had provided personal guarantee to secure the loan. They were the directors of Sameet Motors.

"Subsequent to the availing of the facility, the borrower and the aforesaid guarantors have failed to adhere to the repayment schedule of the loan agreement and as such the account has become a non-performing asset," Tata Capital Financial Services said in a public announcement.

"These guarantors -- Neil Chahal and Charanjit Kaur -- as well as Sameet Motors have failed to repay in spite of a written demand. In view of the default, Tata Capital Financial Services initiated legal proceedings against them for recovery of money for realising our legitimate dues. Hence the public is hereby cautioned not to deal with the above mentioned collateral/security as well as with the said
persons...," the public announcement said.

According to bankers, the photographs, names and addresses of the guarantors would be published in newspapers if the dues are not cleared within 15 days of the notice containing particulars of the original borrowers.

As per the RBI regulations, wilful defaulters are mostly those who are found to be engaged in deliberate non-payment of dues despite adequate cash flow and good net worth.

Banks can also classify the defaulters as 'wilful' if the loans are utilised for purposes other than those previously stated, funds are siphoned off from the bank-financed activity, records are falsified, securities are disposed of without the bank's knowledge and the borrower indulges in fraudulent transactions.

comment Note: By posting your comments here you agree to the terms and conditions of www.hindustantimes.com
blog comments powered by Disqus

Advertisement
more from Jalandhar

Congress keeps its generals out of campaigning

The BJP may have invited prime ministerial candidate Narendra Modi over for five rallies in one day, but most Congress nominees in Punjab are not relying on national leaders to boost t heir campaigns.
Advertisement

 
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved