Follow-up and Recovery functions and duties
a) Recovery of dues through follow-up and inspection of units
b) Monitoring of Non Performing Assets, Postponement/Deferment of instalments, Refixation of instalments and Reschedulement of principal/interest
c) Initiation of Legal action for recovery u/s 30, 31(aa)/32(G) of SFCs Act.
d) Taking possession of defaulting units u/s 29 of SFCs Act of 1951
e) Disposal of assets of possessed units, revival and rehabilitation of sick units
f] Allowing change in constitution/ management.
g) Follow-up of cases registered under Sick Industrial Companies (Special Provision) Act, 1985, winding up of companies cases and Grant of pari-passu/ Second or subsequent Charge to other Institutions.
h) Recovery from Deficit/Decretal/write off cases
i) Identification of properties of promoters/guarantors
Orginisational Structure of Follow-up & Recovery(FR) and
Assets Reconstruction Rehabilitation Cell(ARRC)
GENERAL MANAGER (DEVELOPMENT) |
||||||
Dy. Gen. Manager |
Dy. Gen. Manager |
Dy. Gen. Manager |
Dy. Gen. Manager (ARRC) |
Dy.Gen.Manager |
||
MANGER |
MANGER |
MANGER |
MANGER |
Manager |
||
Dy. Manager |
Dy. Manager |
Dy. Manager |
Dy. Manager |
Dy.Manager |
||
Asstt. Manager |
Asstt. Manager |
Asstt. Manager |
Asstt. Manager |
Asstt.Manager |
||
(ii) THE POWERS & DUTIES OF ITS OFFICERS AND EMPLOYEES (a) DELEGATION OF POWERS SCHEDULE
S.No |
Item |
Authority Delegated |
|
|
|
General |
Joint Finance |
I |
Deferment and Postponement |
||
|
Of principal & interest for one quarter only |
BM |
CMD |
II |
Refixation |
||
|
Disbursing Authority |
BM |
CMD |
III |
Reshedulement |
||
|
a) Only of principal-1 st reschedulement with extn. in 2 yrs. LDR |
BM |
CMD |
2 nd reschedulement (with extn. of original LDR upto 5 yrs. |
BM |
CMD |
|
Subsequent reschedulement(s) |
GM(D] |
CMD |
|
b) Of Principal & Interest |
GM[D] |
CMD |
|
-Reschedulement with extension in LDR upto 5 years. |
.GM( D) |
CMD |
|
IV |
Stoppage of Facilities |
||
|
Declaring of unit as wilful defaulter |
BM |
CMD |
V |
Legal Action (in case of default) |
. |
. |
|
A. Closed Units |
. |
. |
a) To issue notice u/s 30 of SFCs Act |
. |
. |
|
i) Doubtful & Loss |
BM |
CMD |
|
ii) Other Categories |
BM |
CMD |
|
b) i) To take over possession u/s 29 of SFCs Act |
BM |
CMD |
|
ii) SC/ST |
- |
CMD |
|
c) To withdraw notice issue u/s 30 of SFCs Act |
BM |
CMD |
|
d) To give back possession of assets taken over u/s 29 of SFCs Act |
BM |
CMD |
|
e) To file application u/s 31 of SFCs Act |
BM |
CMD |
|
f) To issue notice u/s 32G of SFCs Act |
BM |
CMD |
|
B. Running Units |
|||
a) To issue & withdraw notice u/s 30 of SFCs Act |
BM |
CMD |
|
b) To take over possession u/s 29 of SFCs Act. |
. |
. |
|
i) Sanctioned loan upto Rs. 150 lakhs |
BM |
CMD |
|
ii) Above Rs. 150 lakh |
GM(D) |
CMD |
|
iii) SC/ST/Joint Finance |
- |
CMD |
|
c) To give back possession of assets u/s 29 of SFCs Act |
BM |
CMD |
|
d) To file application u/s 31 of SFCs Act |
BM |
CMD |
|
e) To issue notice* u/s 32G of SFCs Act |
BM |
CMD |
|
*Requisition of Demand to collector (Recovery) |
DGM(R) |
. |
|
VI |
Grant of Charges |
||
|
Pari Passu charge, 2 nd charge and subsequent charges over mortgage assets |
. |
. |
a) 2 nd charge |
BM |
CMD |
|
b) Pari-passu charge |
GM[D |
CMD |
|
VII |
Change in Constitution |
. |
. |
|
(a)Field Offices |
As per sanctioning authority |
|
(b)At Headquarters |
GM[D] |
CMD |
|
VIII |
Mutual Sale |
||
|
a) Cases in which balance outstanding in loan account of concern is upto Rs. 40 lakhs (as on date of mutual sale) |
BM |
. |
b) Cases above Rs. 40.00 lakhs |
GM[D] |
. |
|
c) Joint Finance Cases |
- |
CMD |
|
IX |
Part Sale |
BM |
CMD |
|
Note: a) Acceptable value will be equivalent to the MRV of the assets |
||
b) That by sale of part assets the feasibility and viability of the project will not impair. |
|||
RAJASTHAN FINANCIAL CORPORATION
(ARRC)
[b] DELEGATION OF POWERS REGARDING SALE OF UNITS UNDERPOSSESSION
Name of the Committee |
Scope of coverage |
Authority delegated |
1. BO Level Sale cum Negotiation Committee |
In the branches headed by DGM, the BO level sale cum negotiation committees in loan cases upto Rs. 100.00 lac and in the branches headed by Manager, Dy. Manager, the BO level sale cum negotiation committees in loan cases upto Rs. 50.00 lacs shall have full powers for disposal of assets if offer is equal to or more than 80% of the MRV. |
Full powers for general sale scheme subject to fulfillment of criteria as per scope of coverage. If the BO level sale committee find that the offer is not acceptable as per the above delegation, they will not reject the offer but will send these offers to HO with their detailed comments. |
2. HO Level Sale Committee |
For loan cases above Rs. 50.00 lacs / 100.00 lac (as the case may be), Company cases (under liquidation) and joint finance cases. |
i) Full powers in respect of all cases irrespective of any limit. |
Note :i) As per State Govt. guidelines, the purchaser of the unit under possession shall not be liable to pay the dues of the State Govt. Deptts. i.e. Transport Deptt, Commercial Tax Deptt., Electricity Company, land & Building Tax Deptt, State Excise, PHED, Mining, Industries etc.
ii) The IPI dues of RIICO and Central Excise dues would be payable by the purchaser.
(iv) Norms set for discharge of Follow-up, Recovery, Reconstruction and Rehabilitation functions
Powers regarding various matters relating to follow-up, recovery, reconstruction and rehabilitation have been delegated to various officers/ committees at Branch and Head Office. The powers are available in the manual namely "Procedures and Guidelines." Nature and extent of norms relating to the above activities are available in schedule 3/1 of Chapter FR of Procedures and Guidelines. The system of reviewing defaulting cases is also in vogue through default review committees at Head Office and Branches. Likewise deficit, decreetal and written-off/ written- back cases are monitored through Deficit Cases Review Meeting (DCRM) at Branch Level. Corporation also issues recovery strategy in the beginning of the each financial year. Circulars/ guidelines are also issued pertaining to follow-up, recovery, reconstruction and rehabilitation of the cases as and when special schemes/ norms are required to be prescribed
[vii] (a) Constitution of Sale Committee of units under possession
For speedy revival of units under possession, different sale cum negotiations committees have been formed. The jurisdiction of the Committees has been determined on the basis of amount of loan. Presently Corporation is having three types of sale cum negotiation committee having Constitution as under :
1. General Sale Scheme Committee :
(Quorum Three)
[i] BO Level Sale cum Negotiation Committee(for loan cases Upto Rs. 50.00 lac )
Branch Manager |
Convenor |
Representative of RIICO (not below the rank of ARM) |
Member |
Representative of Bank (not below the level of Officer) |
Member |
Representative of DIC (not below the rank of DIO) |
Member |
Dy. Manager (Tech.) |
Member |
Dealing Dy. Manager / Asstt. Manager |
Member Secretary |
[ii] BO Level Sale cum Negotiation Committee (Where Branch Incharge is of DGM level for loan Cases upto Rs. 100.00 lac )
Branch Incharge |
Convenor |
||
Representative of RIICO (not below the rank of ARM) |
Member |
||
Representative of Bank (not below the level of Officer) |
Member |
||
Representative of DIC (not below the rank of DIO) |
Member |
||
Dy. Manager (Tech.) |
Member |
||
Manager |
Member Secretary |
||
(If Manager is not posted then dealing DM /AM would be member secretary)
[iii] HO Level Sale Committee (For Loan cases above Rs. 50 lacs/Rs 100 lacs (as the case may be) Company cases (under liquidation) and joint finance Cases) and for other cases referred by branch :
ED |
Chairman |
GM(D) |
Member |
Adviser (F) |
Member |
DGM(Loans) |
Member |
DGM (F) |
Member |
Representative of participating institution (In joint finance cases) |
Member |
Manager (Incharge-Law) |
Member |
DGM (ARRC) |
Member Secretary |
Representative of participating Institution in joint
Finance cases |
Member |
DGM(ARRC) |
Member |
Note : The Committee shall have full power to reject any offer.
(viii) [b] Empowered Settlement Committees
In order to redress grievance of various loanee units, in last couple of years, the Corporation has introduced the system of one time settlement of a/cs of NPA through different empowered settlement committees mechanism.
Jurisdiction of the Committee has been determined on the basis of amount to be sacrificed. Presently, Corporation is having three type of Empowered Settlement Committee having Constitution as under :
District Level Committee (DLC)
1. |
Branch Manager (irrespective of rank) |
Chairman |
2. |
General Manager - DIC or his Nominee not below the rank of DIO |
Member |
3. |
Sr. Regional Manager/Regional Manager -RIICO or his nominee Not below the rank of Assistant Regional Manager |
Member |
4. |
DM/AM ( FR ) |
Member Convener |
|
Quorum |
Three |
Head Office Level Committee (HOLC)
1. |
Executive Director |
Chairman |
2. |
Executive Director (Finance) |
Member |
3. |
General Manager (Dev.) |
Member |
4. |
Dy. Gen. Manager (Law) |
Member |
5. |
Dy. Gen. Manager (FR)/(ARRC)/DDW concerned |
Member |
6. |
Dy. Gen. Manager(FR-1.) |
Member Secretary |
|
Quorum |
Five |
Other DGM(s) may also be nominated by CMD from time to time.
Special Head Office Level Committee (Spl. HOLC)
1. |
CMD-RFC |
Chairman |
2. |
Executive Director – RFC |
Member |
3. |
Executive Director (Fin.) |
Member |
4. |
General Manager (D) |
Member |
5. |
Dy. Gen. Manager (Law) |
Member |
6. |
Dy. Gen. Manager (FR)/ARRC/DDW concerned |
Member |
7 |
Dy.Gen.Manager (FR-1_ |
Member secretary |
|
Quoram |
Five |
[
State Level Committee (SLC)
1. |
CMD – RFC |
Chairman. |
2. |
MD – RIICO |
Member. |
3. |
Executive Director,RFC |
Member |
4. |
Representative of LIC |
Member |
5. |
General Manager, SIDBI |
Member |
6 |
Sh. Kamal Mehta, Director,RFC |
Member |
7. |
Executive Director (Fin.) |
Member |
8. |
General Manager (D) |
Member |
9. |
Dy.Gen.Manager (Law) |
Member |
10 |
Dy.Gen.Manager (FR)/ARRC/DDW concerned |
Member |
11 |
Dy.Gen.Manager (FR-1) |
Member Secretary |
|
Quoram |
Six |
 |