Corporate Governance

Recovery of Dues, Excercise of Lien & Delivery of Security

• The Company will not, as a matter of fair dealing, normally recall the loan before the initially agreed tenure except in unanticipated or abnormal circumstances where the Company interests are adversely affected e.g. when the security value diminishes substantially, when the quality of security is not found to be acceptable, due to any regulatory government directives etc. In all such cases proper and reasonable notice shall be given to the members-shareholders recalling the loan before expiry of the normal tenure.
• The Company will make all possible soft or persuasive efforts to get the members-shareholders to repay the dues without resorting to disposal of the security. The Company does not accept nor will it encourage the use any coercive or hard measures to recover its dues from the members-shareholders.
• The Company will deliver the security to the members-shareholders immediately upon settlement of the loan in the same condition as was at the time of sanction of the loan. If the security has signs of damage thereon, before being taken custody of by the Company at the time of sanction of loan, the fact will be briefly incorporated in the sanction letter.
• The Company shall issue a signed and, normally, a system generated receipt for all cash payments made by the members-shareholders immediately. The Company shall also accept payments vide cheques, demand drafts, etc. subject to the condition that the said account will be closed only after confirmation of realization.
• The Company will resort to auction the security only as a last resort and that too after adequate and proper notice is served on the members-shareholders to repay the dues and also after direct contact Such notice will be as per the terms contained in the sanction letter and also in compliance with applicable laws and regulatory guidelines. The disposal of the security will be taken up through public auction when the members-shareholders does not positively respond to the communications sent by the Company to close the loan account along with interest and other charges like notice fees.
• Where the Company proposes to dispose of the security even before the normal tenure of the loan based on the rights conferred on the Company vide loan application and loan sanction letter adequate and proper notice will be served on the members-shareholders before such action is initiated for recovery of dues.
• The Company prefers and encourages members-shareholderss to take back delivery of the security immediately upon full settlement of all dues. However, should there be exceptional instance of the members-shareholders being unable to take delivery of the security, not attributable to the inability of the Company, after closure of the loan account reasonable safe custody charges may be payable which will be duly advised to the members-shareholders.
• The Company will not interfere in the affairs of the members-shareholders except for the purposes mentioned in the terms & conditions of the loan or when constrained to do so due to inadequate or false disclosures made by the borrower at the time of putting through the transactions.