RFC/PG/1163 (FR SECTION) Ref.No.RFC/FR/HO/Policy/9/2359 Dated: 08.12.06 CIRCULAR Sub: Time frame for initiation of legal action where two or more instalments of principal sum or interest are in default In order to streamline the procedure and to bring uniformity with regard to initiation of legal action u/s 30/29 of the SFCs Act, 1951 in the event of default in all cases. It has been decided that on default of two or more consecutive instalments of principal sum or interest legal action should invariably be initiated u/s 30/29 of the SFCs Act. It has also been observed that there is no uniformity in the time frame for legal notices issued by the branch offices. It has also been observed that after expiry of legal notice prompt action is not taken in fixing date of takeover of possession u/s 29. It has, therefore, been decided to prescribe the time frame with regard to initiation of legal action u/s 30/29 of the SFCs Act as follows: �If the persuasive efforts after first default do not yield results and the loanee fails to clear overdues as per the norms then, legal action u/s 30/29 should be invariably be initiated immediately on default of two or more instalments of principal sum or interest as follows:
Accordingly, point No.4.1, 4.3, 4.4, 4.6 and 4.8 of Chapter No. FR-4 of P&G are hereby amended. All concerned are advised to make note of the above and ensure strict compliance of these instructions in all cases of assisted units in default. (B.N. Sharma) RFC/PG/1163 RAJASTHAN FINANCIAL CORPORATION Ref.No.RFC/FR/HO/Policy/15/1831 Dated: 06.10.06 CIRCULAR Sub: Premium on pre payment of principal instalments in cases where legal notice has been issued Attention is invited to FR circular No. 261 dated 20/31 st December, 2001 regarding above. The Board of Directors in their meeting held on 15.9.06 have decided that in the cases where legal notice has been issued and in compliance thereof the loanee concern desires to clear the entire outstanding amount within 45 days from the date of issue of legal notice, no premium shall be charged as the party is depositing the amount at the behest of the Corporation in terms of legal notice. However, if entire outstanding is not repaid by the loanee concern within the stipulated period, premium as applicable would be chargeable. All other provisions / terms and conditions of PG circular No. 915 dated 30.4.01 and referred FR circular No. 261 dated 20/31 st December, 2001 shall remain unchanged. All concerned are advised to take a note of above and act accordingly. (Karni Singh Rathore) RFC/PG/979 RAJASTHAN FINANCIAL CORPORATION Ref.No.RFC/23FR/HO/Policy/9/5076 Dated: 08.08.02 CIRCULAR Sub: Default in Deferred Sale cases Asper policy on initiatinag legal acation, so far considerations have been defined under Section 4.3 of PG on FR. Analysis has revealed that the units sold on deferred payment basis start commiting default and instead of alleviating the health code category by virtue of sale of unit in new hands, add to sticky accounts. Therefore, the management has laid down the following guidelines to deal with the incidence of default in units sold on deferred payment basis:
All concerned are advised to strictly adhere to the above guidelines in dealing with the cases sold by the Corporation on deferred payment basis and to make note of the guidelines referreed at at (i) to (iv) above under a new sub-para 4.3. A in Chapter FR.4. �Units sold on deferred payment basis prior to 1.4.2000 having overdues of more than two consecutive principal instalments need immediate legal action including take over of possession by the concerned DGM(R) except in cases of joint finance and the cases of units relating to SC/ ST.� (D.K. Vijay) RFC/PG/992/2002/ RAJASTHAN FINANCIAL CORPORATION Ref.No.RFC/FR/HO/Policy/9/6391 Dated: 17.12.02 CIRCULAR Sub: Empowered Settlement Committees In partial modification of PG Circular No.979 dated 8.8.02, point No. (ii) �Units sold on deferred payment basis prior to 1.4.2000 � after seeking approval of HO� be read as : �Units sold on deferred payment basis prior to 1.4.2000 having overdues of more than two consecutive principal instalments need immediate legal action including take over of possession by the concerned DGM(R) except in cases of joint finance and the cases of units relating to SC/ ST.� (D.K. Vijay) RFC/PG/1163 RAJASTHAN FINANCIAL CORPORATION Ref.No.RFC/FR/HO/Policy/17/1957 Dated: 13.10.06 CIRCULAR Sub: Empowered Settlement Committees In partial modification of PG Circular No.1038 dated 28/29.1.2004 (FR Circular No.297), the revised position of constitution and jurisdiction of HOLC, Special HOLC and SLC is as under : 1) Head Office Level Committee (HOLC) The Committee shall entertain cases having financial implications upto Rs.30.00 lac and appeal cases of DLC. Constitution :
Quorum : Four Other DGM(s) may also be nominated by CMD from time to time. 2) Special Head Office Level Committee : Constitution :
Quorum : Four The jurisdiction of Special HOLC shall be as under :-
3) State Level Committee (SLC) : The committee will consider the cases where sacrifice amount is more than Rs.1.00 crore. Besides this, appeals of Special HOLC will also be considered by this Committee (appeal except the decision of Spl. HOLC in appellate matter). Constitution :
Quorum : Four Senior-most Officer � CMD, RFC/RIICO will chair the meeting of the Committee. Accordingly clause 12.2(b) (c) (d) of PG Chapter regarding Empowered Settlement Committees be updated with the above changes. All other provisions/terms and conditions of referred PG Circular No.1038 dated 28/29.1.04 shall remain unchanged. All concerned are advised to take a note of above and act accordingly. (Karni Singh Rathore) RAJASTHAN FINANCIAL CORPORATION Ref. No. RFC/ HO/23.FR/Policy-20/1950 Dated : 12.10.2006 C I R C U L A R Sub : Non compliance of PG provisions with regard to withdrawal of Legal Notice As per P&G(FR-4), point no.4.11 and 4.12, Legal Notice U/s 30 may be withdrawn on payment of 50% of the overdues as on date of Legal Notice and in case the unit is not in a position to pay an amount equivalent to 50% of overdues then PG provides that it should make payment atleast to the following extent depending upon the Category of the account :-
In the spirit of the aforesaid clear provisions contained in PG the loanee should deposit either 50% of the overdues or the minimum amount as per category of account as specified above after issuance of Legal Notice immediately and in case they fail to deposit the said amount then action U/s 29 for take over of possession should invariably be taken meaning thereby either the party should make the payment as per above or immediately after expiry of Legal Notice, date of possession should be fixed by the BO and possession should be taken over in case payments have not been made as per above. It has come to notice that many Branches are accepting Post Dated Cheques for the aforesaid stipulated amount which is in contravention of provisions of PG contained in Point No.4.12(B). It is, therefore, once again reiterated that in case the party failsl to deposit the amount on cash down basis immediately after issue of Legal Notice as per existing provisions then date of possession should be fixed and possession should be taken over on expiry of Legal Notice. Only in those cases where party makes the payment as per above provisions then Legal Notice should be withdrawn after arriving at a clear understanding with the party for payment of remaining dues regularly PDCs should also be obtained for the remaining dues and accounts should be regularized as per norms. Any violation will be viewed seriously. (Karni Singh Rathore) /RFC/FR/PG-1079/ RAJASTHAN FINANCIAL CORPORATION Ref: RFC/23FR/HO/Policy/25/1667 27 th September,2004 CIRCULAR Reg: Delegation of Powers The Corporation is poised for much higher achievements in the fields of Sanction, Disbursement & Recovery where fast decision-making is the corner-stone. In view of this objective, the Board of Directors in their meeting held on 13.9.04 has delegated FR powers in a big way at field level. The structure of delegation of FR powers is enclosed to replace Schedule-3/1 & 3/2. It is enjoined upon all concerned to exercise these powers with prudence. (Sanjay Dixit) RAJASTHAN FINANCIAL CORPORATION Reg.: Proposed Delegation of Powers Schedule-3/1
RAJASTHAN FINANCIAL CORPORATION Ref.No.23FR/HO/P-25/148 Dated : 13/15.4.2005 CIRCULAR Sub : Delegation of Powers The delegated authority structure was defined vide FR Circular No.314, dated 27.9.04. While implementing the circular, it was observed that in the case of Reschedulement of Principal and Interest extension in LDR was very much required. Therefore, the matter was placed before the Board and amendments made in the delegated structure are as under :
All concerned are advised to take note of the above modification. (Karni Singh Rathore) |