FORMAT III FOR SUBMISSION OF COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST

PROPOSALS BY BRANCHES/CIRCLES TO APPROPRIATE SANCTIONING AUTHORITIES

CANARA BANK
(HEAD OFFICE: BANGALORE)

Submitted by: Submitted to:

CANARA BANK R & L SECTION
KANCHARAPALEM BANCH CIRCLE OFFICE
VISAKHAPATNAM VIJAYAWADA
REF: KCP:NPA:OTS:003:2434.840.2/19-20
DATE: 09.03.2020

SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – M/s SAI BHAVANI
TOBACCO – ARM BRANCH, VIJAYAWADA.

1. BRIEF PROFILE:
a) Name of the borrower Mrs. Adari Chandraaala
Cust ID 95982230
Account Number 2434840000002
b) Name of the Group (if any) No
c) Name of the branch & Original branch in case of Kancharapalem Branch (2434)
ARM branch
d) Constitution Individual
e) Date of Establishment New Borrower.
f) Line of Activity Agriculture – Inland Fisheries
g) Since when dealing with us/enjoying credit 11.03.2015 / 25.03.2015
facilities
h) Location of factory/business (Specify free Inland fisheries in 174.15 acres of leased land in
hold/lease hold/rented) Annakoderu Village, Bhimavaram Mandal, West
Godavari Dist. AP
i) Purpose of credit facilities KCC - Working Capital
j) Date of Sanction & Sanctioning authority Date Authority
I. First Sanction 25.03.2015 – DGM-CAC-CO-VISAKHAPATNAM
ii. Last renewal NA
k) Banking Arrangements Sole Banking
l) If Consortium/Multiple Banking Arrangement, Name of the Member Share %
furnish details (Leader, Name of the members & NA
share in %)
m) Date of NPA/Year of Doubtful/Loss NPA: 04.10.2016 Loss: 14.03.2018
Liability as on the date of NPA Rs.: 250.25 LACS
n) Present Asset Classification Loss
o) Suit Status/Date of limitation OA 330/2017 Dtd:18.04.2017
p) Nature of Default Fraud Reported
q) If wilful, date of reporting to RBI (Refer HO Not Applicable
Circular No. 36/2007)

2. DETAILS OF OTS/WRITE-OFF/WAIVER: (Rs. In lacs)

 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

Book Suit Unapplied Interest Provisio OTS Write Waiver Net

Liability expenses n Amt off Of UAI Impact
debited to Offered at
MCLR- Contr/
GC after MCLR-
3.50 Decreed rate
01.04.200 3.50%
3
253.09 NIL 42.44 210.78 253.09 300.00 NIL 42.44

3. PRESENT PROPOSAL:

a. Accept Rs.300.00 lacs in full and final settlement,:

b. Write off -NIL

c. Waive unapplied interest of Rs. 42.44 lacs calculated at one year MCLR(8.65)-3.50% (simple)
from 04.10.2016 to 31.12.2019 and further interest from 01.01.2020 till clearance. Waiver
of unapplied interest of Rs. 210.78 lacs at contractual rate.

(i.If UAI calculated is from any date other than the NPA date, furnish the reasons
ii. UAI is to be furnished upto the last completed quarter)

d. Any other clauses/conditions, like consent decree, collection of suit expenses/pending legal/
other expenses, withdrawal of suit/claim filed against the Bank, etc, relevant to the proposal
may be included)

e. Release the documents/title deeds of securities charged to the Bank only on receipt of the
entire compromise amount and treat the account as closed.

f. The concession extended as above stands automatically withdrawn in case the party fails to
remit the compromise amount within the stipulated time and the Bank reserves the right to
proceed legally for recovery of entire dues in case the party does not comply with the
above.

3.1. TERMS OF EARLIER COMPROMISE PERMITTED, IF ANY AND COMPLIANCE THEREOF/ PROGRESS
MADE: Not Applicable
4. COMPROMISE POLICY: (REF. HO CIR 186/2019 ON LOAN RECOVERY POLICY

Whether the proposal is within the compromise YES/NO

 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

policy
a.If the proposal is within the compromise policy, then
i.Cut off date 04.10.2016
ii. Rate of interest charged from the cutoff date 10.35
iii. Yield (%) (from the cutoff date till the date of -
the proposal)
iv. In the case of accounts classified as “Marked Not applicable
for Recovery”, if cutoff date is any other date
prior to classifying the account as “Marked for
Recovery” justification for reckoning the same
as cut off date
v. Amount payable as per compromise Policy Maximum amount possible
b. If the proposal does not fall within the Proposal falls under the parameters of
parameters of compromise policy, inform compromise policy
reasons.

5. NAME/S OF PROPRIETOR/PARTNER/DIRECTORS/GUARANTORS AND THEIR NETWORTH :

Rs. In lacs

Name/s of Borrowers# Net worth* Indicate reasons for wide

Guarntors/Co-obligants As on grant At Present variation in net worth, if
any
A.Proprietor/Firm &
Partmers/Company & Directors #

1.Mrs Adari Chandrakala 500 lacs 378 lacs Details of other

As per NF properties not known
589 dt
13.03.2015
B.Guarantors/Co-obligants:

1.Adari Venu Gopala Krishna Details Not

(Husband of the Borrower) available

2.A.V Rama Raju 150.00 lacs Not Known Property could not be
demarcated to proceed
under SERFAESI
# Borrower also includes partnership firm/pvt. Or Public Ltd Companies, etc, in respect of which net
worth shall be furnished separately.
*Furnish net worth of the parties excluding securities already charged to the Bank

5.1 DETAILS OF OTHER ASSETS (OTHER THAN THOSE CHARGED TO THE BANK) OF
PROPRIETOR/PARTNERS/DIRECTORS/GUARANTORS/CO-OBLIGANTS:
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

c. OTHER COLLATERAL SECURITIES:

SL SECURITY VALUATION AT THE TIME VALUE AS PER PRESENT VALUATION
NO DETAILS OF SANCTION PREVIOUS VALUATION
Rs

PMR REALIZABL PMR REALIZABL PMR REALIZA

E VALUE E VALUE BLE
VALUE
Rs.
Rs

2 Vacant site – 4,95,000 4,45,000 NA NA NA NA

165 Sq Yds in
the name of
Smt A.
Chandrakala

3 Vacant site – 1,50,00,000 1,35,00,000 NA NA NA NA

250 Sq Yds in
the name of
Sri A.V.
Ramraj

(Rs. In lacs)
*value furnished above must correspond/ reflect the networth of the parties

6 . PARTICULARS OF CREDIT FACILITIES/CLASSIFYING THE ACCOUNT AS “MARKED FOR RECOVCERY”

(LIMIT –WISE):

(Rs. In lacs)
Nature of Limit Date of Date of AOD ROI Date of Amt Present
Limit amt loan Charged classifying outstandin Liability
the g as on the
account as date of
“Marked classifying
for the account
Recovery” as “Marked
for
Recovery”
KCC 250 25.03.201 Suit filed. 10.35 24/07/201 348.63 463.87
5 OA 7
330/2017
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

6.1. DEATAILS OF RECOVERY, INTEREST SUSPESE, EXPENSES:

(Rs. In lacs)
Recovery Recovery Total Date of last Interest Suit Other
till after Recovery payment suspense expenses expenses(insurance,
classifying classifying and reversed debited to security etc) debited
the account the account amount to loan the account to the account as
as “Marked as “Marked as “Marked “Marked for
for for for Recovery”
Recovery” Recovery” Recovery”
----- 4.90 4.90 0.40 on ----- 0.20 -----
04.01.2020

7. DETAILS OF SECURITIES: (Rs. In lacs)

Details of Security As at grant As at latest renewal Latest valuation Realisable

with Charge Value Date of Value Date of Value Date of value*
(Specify/I/II/ valuation* valuation valuation*
Paripassu Charge & *
our share in %)
Prime: Hyp of Fish
feed,Medicines and 466.00 NA NA NA Nil NA No
Live fish in 175.14 Unit.Frau
acres (Fish Ponds) d
reported.

Collateral:Belonging 330.00 20.03.201 NA NA 378.00 24.02.202

to Smt Adari 5 0 340.20
Chandrakala
Land and building
400 sq yds of site
and GF + 2 Floor
Building at D No:44-
35-22,
Srinivasanagar ,
Akkayyapalem ,
Visakhapatnam.

*Specify our share in case of Consortium/Joint Charge and reasons

** After allowing permissible depreciation (i.r.o. building, plant & machinery) as per Bank’s norms,
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

 Furnish the name of the owner of the property, for each security.
 Reduction in value of the property vis-a vis original/ earlier valuation shall be properly explained
 Separately furnish full details of assets/securities viz. Plant & Machinery, land & building etc.,
(including location & extent of land)
 Deletion of properties/securities in the intervening period shall be explained suitably.
 Latest valuation report (as per Cir 119/2019 date 30.09.19) should contain photographs of
securities, countersigned by valuer & Branch Manager.


7.1 DETAILS IN CASE OF IMMOVABLE PROPERTIES MORTGAGED TO BANK AS SECURITY:

a)Nature of title (if leased, furnish period/expiry/other Owned
terms of lease)
b) Nature of property (Specify whether Residential and Commercial
residential/commercial/agricultural/industrial)
c) Location of property, survey Nos., Extent Land and building 400 sq yds of site
and GF + 2 Floor Building at D No:44-35-22,
Srinivasanagar , Akkayyapalem , Visakhapatnam
in the name of the borrower Smt.A.Chandrakala
d) Locational advantage/disadvantage of the property Commercial and well located
e) Statutory dues, if any (Details like IT, ST, workers NIL
dues, Customs etc. to be specified)
f) Observation regarding condition of securities and In good condition
whether factory, land and building, machinery, etc., is
mortgaged to us
g) Whether inspection of securities was conducted 24.02.2020
regularly? If so, date of last inspection and observations
h) If securities are not there, what happened to the Not applicable
Securities and action taken
i)Gist of observations of the branch-in –Charge (Who Property is in good condition
accompanied the valuer) on the valuation report
j) Whether photograph/s of the security is/are enclosed Yes
K) * Action taken under SARFAESI Act:
i) Date of Demand Notice: 13.10.2016
ii) Date of taking possession: 25.01.2017 (Symbolic)
iii) Date of disposal: 25.03.2019 e-auction failed.
iv) Amount realized: Not applicable
v) Present Position: Party approached for OTS
l) Whether any expenses are incurred on account of Debited to the loan account.
insurance/security/SARFAESI action etc.
*Action under SARFAESI Act should not be suspended/postponed on account of submission of OTS
proposal or any other reasons.

8.DETAILS OF LIABILITY WITH OTHER BANK/S FINANCIAL INSTITUTIONS (FIs):

SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

a)Liability with other Banks/FIs Not known to us

b) Action taken by other Banks/FIs Not known to us
c) Details of direct/indirect liabilities, if any of the Not known to us
Borrowers/Guarantors

9.DETAILS IN RESPECT OF DICGC/CGFSI/ECGC:

a)Whether eligible for DICGC/CGFSI/ECGC cover Not Applicable
if not, furnish reasons
b)Relevant date & liability as on the relevant date Not Applicable
c) Date & amount of claim preferred Not Applicable
d) Date & amount of claim settled & present Not Applicable
balance in SL
e) Specify reasons, if claim is not preferred/not Not Applicable
settled and if there is any delay in
settlement/rejection of claim
f) ECGC claim amount available for appropriation Not Applicable
(Ref H.O.Circular 348/2009)

10. DETAILS OF SICKNESS/BIFR/OL:

a)Sickness: Not Applicable
i) Date of sickness of Company
ii) Date of closure of Company
iii) Reasons for closure
b) If referred to BIFR: Not Applicable
i) Date of registration:
ii) Present position:
C) If Company is under liquidation: Not Applicable
i) Date of winding up:
ii) Whether OL is appointed:
iii) Action taken for disposal of security
iv) Date of claim
v) Amount of claim
vi) Charges paid to OL
vii) Present position

11.DETAILS OF FOLLOW UP FOR RECOVERY/LEGAL ACTION:

(Furnish details of all types of suits, including drawee suits under item e to l)
a)Action taken for recovery including details of Initiated recovery action under SARFAESI and
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

dates of personal contacts and results suit was also filed..Contacted borrower and
persuaded to come forward to settle the account
under OTS
b) Date of legal notice and response Suit filed on 18.04.2017 in DRT
c) whether loan papers/mortgage is in order Yes
d) If suit is not filed, reasons & approximate Not applicable
expenses to file suit and chances of recovery
e) Date of filing suit @ Court/DRT OA 330/2017 DT 18.04.2017 DRT
f) Suit claim Rs. 3,27,59,379/-
g) Suit expenses Rs. 1,50,000/-
h) Date of decree (Court cases)/Final orders
passed
NA
(DRT cases) & amount, costs & interest awarded
& other terms of decree.
i)Date & amount of RC issued/ Date of demand
NA
notice served on the parties. (DRT cases)
j) Date of filing EP & amount (Court cases) NA
k) If EP not filed, furnish reasons NA
l) Present position of Suit/RC/EP Posted to
m) Appeal filed, if any, with details like date, Not applicable
purpose, present position etc.
n) Name of the Advocate handling the case K Uday Kumar

12. BRIEF BACK GROUND:

(Brief background of the account, reasons for account slipping to NPA, recovery efforts made by the
branch, details of personal contacts made, if any, action initiated under SARFAESI Act, must be furnished

Mrs Adari Chandrakala approached the Kancharapalem branch with a request to grant
certain credit facilities towards meeting working capital requirements. The main activity is
Inland Fisheries

The limit was sanctioned by DGM-CO-CAC of Previously Circle Office Visakhapatnam by

stipulating hypothecation of Fish feed, Medicines and live Fish grown in 174.15 acres of
leased ponds with a stock value of Rs.466.00 lakhs . Collateral of L & B in 400 Sq Yds with
RCC roofed GF + 2 floors in the name of Smt Adari Chandrakala valued at Rs.330.00
lakhs.The limit was tenable for 5 years . The limit became irregular and classified as NPA on
04.10.2016.Unit was not in existence since 02.06.2016 and reported as FRAUD by the
branch vide Ref:MS Fraud KCC 20 2017 MSD Dtd: 19.05.2017 to R&R Section, HO Bengaluru.
At present, the account is in Loss category and the borrower is not doing any activity.
Recovery steps were initiated by the branch by filing suit in DRT.
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

13. DETAILS OF STAFF LAPSES & CERTIFICATE:

a. Whether staff lapses are looked into: Yes

b. Date of investigation report: 25.05.2018
c. In case investigation is not conducted, reasons for the delay: Not Applicable
d. If lapses are identified, nature of lapses: Procedural/Actionable
e. If yet to be identified, reasons for the delay: Not Applicable
f. In case of lapses, further action taken like chargesheet issued with date and whether it is a
vigilance/Non-vigilance case: FSA Note to be sent to HO for approval.
g. Lapses on the part of the officials of the Bank in handling/follow up of the account: As per IO report.
h. Action taken from staff angle/present position (Name of the officials & punishment imposed must be
furnished): Yet to be fixed

i.Staff Lapse Certificate:

We Certify that:
i. That the sanctioning authority in the case of advances had exercised his powers judiciously, and
adhered to the guidelines issued by Bank in the matter of grant of advances and that normal terms and
conditions were stipulated.
ii. That there was no laxity in the conduct and post disbursement supervision of the advances, other
than what is stated above.
iii. That there was no act of commission or omission on the part of the staff leading to the debt proving
irrecoverable, other than what is stated above.
iv. That all possible steps to recover the dues have been taken and there are no further prospects of
recovering the debt and writing off waiver or compromise is in the larger interest of the Bank.

14. GROUNDS FOR RECOMMENDATIONS OF BRANCH:

(suitable recommendation for accepting the OTS with comments on security, present realizable value,
networth of the borrowers/guarantors, steps taken for ascertaining the networth, recovery made in the
account, yield, position of DRT case/execution of RC etc., merit for OTS, must be furnished. Specific
grounds for recommendation, where security/networth is substantial must be furnished.)

The borrower incurred a huge loss in business. The account falls under doubtful category and
the borrower is not doing any activity. The property mortgaged to us as collateral security
was residential cum commercial property.

The realizable value of the securities is amounting to Rs. 340.20 lacs whereas the offer of
the borrower is Rs. 300 lacs which appears to be reasonable. Hence we are forwarding
the proposal for your consideration.
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

15. DELEGATION OF POWER:

As per HO Cir. 186/2019, for non willful defaulters, where the securities and/or networth of the
borrowers/ guarantor/s/ co-obligant/s is not sufficient or negligible to cover the contractual/
decretal dues, it should be our endeavour to recover the maximum amount possible, keeping in
view the realisable value of securities/assets of borrower/s/guarantor/s/co-obligant/s and the
time taken for realisation of the same.

In this instant case, realizable value of the security and networth put together comes to Rs.
lakhs i.e ( Rs. lakhs + Rs. lakhs ) which is not sufficient to cover the contractual liability dues
of Rs. lakhs as on date. The total sacrifice upon acceptance of Rs. lakhs as OTS comes
to Rs. lakhs and the same shall fall under the powers of GM-CO-CAC.

Delegation DM-RO- AGM- DGM- AGM-CO- DGM- GM-CO-

CAC* RO- RO-CAC* CAC CO-CAC CAC
CAC*
Write Off/waiver of 15 30 40 35 50 75
UAI (put together)

*Excluding CACs of SME Sulabh

(Rs. In lacs)
Book Liability 253.09
Unapplied int. @ One year MCLR-3.5 (8.65-3.5) 42.44
(ref page 43 cir 186/2019)
Legal expenses debited to GC after 01.04.2003 Nil
Total dues 295.33
Less: Compromise Amount 300.00
Sacrifice nil

16. IMPACT ON P & L:

(Rs. In lacs)
Release of Provision 253.09
Recovery of interest suspense Nil
Recovery of unapplied interest 46.91
Total 300.00
Less: Amount written off NIL
Net Impact 300.00
17. SOURCE OF PAYMENT OF OTS AMOUNT:

Mobilizing funds from friends and relatives.

 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

18. ADDITIONAL INFORMATION, IF ANY: (Details of group accounts, if any to be furnished here)

NIL

19. VIEWS & RECOMMENDATIONS OF CIRCLE:

 Branch recommendation is the prime consideration of the proposal.

 Irreparable loss in the business owing to the adverse market conditions and party’s inability to
revive the unit and to meet financial obligations.
 Borrower‘s bonafide intention to settle the account as per the schedule mentioned under point
3a.
 Realizable value of the property is Rs.340.20 lacs whereas offer of the borrower is Rs.300.00
lacs
 Assets identified in the name of the borrower/guarantor are in joint names and may take
several years to enforce the securities through legal means.
 Impact of Rs. on our exchequer with release of provision amount of Rs. lacs under
doubtful category (write off – Rs. lacs).
 In case of default in OTS terms and conditions, action under SARFAESI will be initiated from the
position it was deferred. (CMM Orders already Applied).

The present offer is accepted by HO, GM in cluster adalat held on 07.03.2020 . Owing to the aforesaid
recommendations, we may accept the present OTS of Rs.300.00 lacs as full and final settlement of dues
and waive any additional charges incurred towards action under SARFAESI (CMM Orders), if amount is
paid as per the compromise terms.

OFFICER

// SUBMITTED FOR ORDERS OF GM-CO-CAC //

SENIOR MANAGER DIVISIONAL MANAGER

 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

DEPUTY GENERAL MANAGER GENERAL MANAGER

Notes:

1. Circles should note to furnish any other necessary information relevant to the proposal under
“Brief Background”, if the same is not furnished elsewhere in the format.
2. In respect of OCC/KCC/PC advances, the reasons for the delay in taking possession of the
securities and if securities are not available, when sold and what action branch has taken, to be
furnished.
3. In respect of unpaid supply bills, the reason for non-payment, if drawees, whether power of
attorney was registered and if not, reasons to be stated.
4. Fate of SDB goods, when re-booked/sold and if not rebooked, reasons, to be stated.
5. Action taken on drawees of bills to be mentioned.
6. Where criminality on the part of the borrower is involved, details of action taken and if not
reasons to be informed.
7. Where write off arises from overdrawings/transgression without authorization, indiscriminate
use of delegated powers, sanction deviation etc, full details and action taken along with the pass
sheet of the account must be furnished.

Sl No. CHECK LIST: YES/NO

1 Whether copy of latest valuation report which is not older than 1 year is enclosed Yes
(Cir no 186/2019 on Loan Recovery Policy)
2 Whether the security has been inspected by the branch-in-charge and observation Yes
thereon is furnished (Refer HO Cir 308/2005)
3 Whether colour photographs of the securities countersigned on the reverse by the Yes
concerned valuer and the branch-in-charge are sent
4 Confirm that action under SARFAESI Act (wherever applicable) is not Yes
suspended/postponed (HO Cir 296/2007)
5 If default is wilful, whether report to CIBIL/RBI is made (Refer Cir 36/2007) No
6 Whether investigation into staff lapses is initiated NA
7 Whether down payment of 10-25% is received/proposed Proposed
8 Whether annexure D as per HO Cir 401/2015 dt 10.08.15 furnished Yes
Ensure that checklist is furnished invariably.
SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

Annexure D – OTS
Recovery Wing
Sl No Particulars
1 Date/Age of NPA 04.10.2016
2 Classification of the account Loss
3 Book Liability Rs. 253.09 lacs
4 Total dues as per Loan recovery policy Maximum Amount
5 Total contractual dues Rs. 463.87 lacs
6 Value of the securities Market value, Realisable value Rs. 378.00 lacs & Rs.
340.20 lacs
7 Whether networth of the Borrower/guarantors, yes
corporate guarantors furnished
8 Statutory dues/Attachments if any on the securities No
9 Whether the borrower is wilful defaulter No
10 OTS offered Rs.300 lacs
11 Whether OTS amount is proposed to be paid in Installments
lumpsum/installments etc
12 If paid in instalments, whether NPV of settlement is
more than the NPV of securities net off cost of
realization
13 Whether valuation of securities is below one year, date Yes. 24.02.2020
of valuation
14 Whether two valuations reports for independent panel Not applicable
valuers are obtained and taken into account, where the
value of the security is more than Rs.5 crores.
Locational advantages/disadvantage of the securities if
any
15 Whether inspection of the securities is done by the Inspected & the valuation
branch officials and branch has confirmed the valuation submitted by the valuer is
given by the valuer is satisfactory satisfactory
16 Balance sheet of the company in case the Not applicable
borrower/corporate guarantor is a public/private ltd
company, to ascertain the present position/dealing of
the company
17 Whether the borrower or the guarantors have any No direct/ indirect liabilities
other direct or indirect liability/ies to the bank, if so
whether all the accounts are considered for settlement,
if not how they are going to be delath with
18 Whether any fraud is reported/CBI/Police complaint is No
filed/pending consideration – Fraud case shall be closed
only after CBI/Police case is concluded finally –
CBI/Police authorities are intimated of the OTS sanction
 SUB: PROPOSAL FOR COMPROMISE/WRITE OFF/WAIVER OF UNAPPLIED INTEREST – Mrs ADARI CHANDRAKALA
KANCHARAPALEM BRANCH, VISAKHAPATNAM
REF: KCP:NPA:OTS:003:2434.840.2/19-20 DATE: 09.03.2020

and that acceptance of OTS is without prejudice for the

Police/CBI to prosecute the case till its logical
conclusion

19 What are the recovery measures taken by the Bank both Suit filed in DRT and action
in terms of legal & non legal action to expedite recovery, under SARFAESI Act initiated.
whether satisfactory etc. Satisfactory
20 Impact of the OTS on the Bank Rs.
21 Whether OTS proposals are recommended by the Yes
Recovery section
22 Whether the OTS recommended is within the policy of Yes
the bank

FOR BRANCH USE:

We confirm that we have carried out the due diligence with regard to the above proposal in terms of the
extant guidelines of the Bank.

Sr Manager CHIEF MANAGER