Proceedings, OTS etc.
Credit Guarantee Schemes for Banks (CGS-I) Credit Guarantee Schemes for Banks (CGS-I)
1. What is meant by conclusion of recovery proceedings?
The recovery proceedings would be stated as concluded after the decree has been enforced and recovery has been completed by the MLI and outstanding amount has been recovered by the MLI or decree to get time barred if no further recovery possible.Please refer Circular No.135.
2. Can a lending institution go for one time settlement (OTS) in respect of defaulted cases, which are covered under the Scheme?
Yes. The lending institution is, however, required to keep the Trust informed. In order to avail claim, legal action must be initiated by the MLI even in the event of OTS.
3. Who will bear the legal expenses of recovery, MLIs or borrower or CGTMSE?
Initially, the legal expenses will be borne by the MLI. At the time of remittance of recovery proceeds to CGTMSE by the MLI, same may be deducted.