(ii) Scheme for Settlement of Small Loan cases having sanctioned amount upto Rs. 0.50 lac : 2006-07
1. ELIGIBILITY
The following type of cases, where the last disbursement of loan was made upto 31.03.2000 and the accounts categorized as "Doubtful" and "Loss" as on 31.03.2005, may be covered under the Scheme:
a) Loan cases having sanctioned amount upto Rs. 50,000/- including Single Window/Composite Loan.
b) Loan under Shilpbari Scheme
c) Transport Loan cases having sanctioned amount upto Rs. 50,000/-
2. SALIENT FEATURES
a) The cases(irrespective of primary security/collateral security/ third party guarantee/net worth of promoter/guarantors) shall be settled on principal sum plus other money on the date of settlement. This shall also be made applicable in the cases where the units are under possession of the Corporation.
b) In the cases where court case has been filed by the party, that will have to be withdrawn before issue of "No Dues Certificate".
3. OPERATIVE PERIOD OF THE SCHEME: 01.04.2006 to 30.12.2006.
4. REGISTRATION FEE
The cases will be registered alongwith registration fee of Rs. 1,000/- and up-front amount equivalent to 15% of principal sum plus other money within a period of one month from the date of registration. The competent Authority shall however, settle the case only after the loanee deposited registration fee and up-front amount within the stipulated period.
NOTE: The registration fee and up-front amount will be deposited in one stroke.
5. COMPETENT AUTHORITY
Competent authority shall be the Branch Manager/In-charge Branch Irrespective of sacrifice amount. If the competent Authority does not decide the case eithin two months from the date of registration, the authority will become functus officio and case will be decided by the next higher authority, that will decide within one month.
6. PAYMENT OF SETTLELMENT AMOUNT
Generally, settlement amount is to be received in one instalment. However, if party opts to make payment in instalments, then, party be allowed to pay settlement amount in monthly instalments, but in any case repayment period would not be beyond Feb., 2007. Interest @ 13% p.a. shall be charged from the first day of the following month of the date of settlement on balance settlement amount.
7. RESTRICTIVE CLAUSE
a) The case, where the account has already squared up shall not be re-opened.
b) The cases already decided by Empowered Settlement Committee but last date of payment in terms of decision of settlement committee has not expired shall not be eligible under the scheme. The cases in which last date of payment has expired will be settled on the balance unpaid amount as settled earlier plus interest @13% per annum on balance amount.
c) In no eventuality, the cases be settled below principal plus other money.
d) In cases where other money is more than the principal sum then other money equivalent to principal sum on the date of settlement may be taken.
e) Effect of settlement will be given only after full amount of settlement has been recovered.
8. DISCRETIONARY POWERS OF CMD
In case of any difficulty in implementation/ interpretation of the scheme or any clarification or relaxation is required, CMD's decision will be final. CMD is authorized to allow registration/extension in making payment of settlement amount beyond the cut off date, if required, depending upon merits of the case.