We strongly believe that focusing on business revival is the real solution to set things back on track. Until such time, it is essential to utilize financial resources in the most productive manner. Servicing loan EMI or interest by creating an additional debt burden will not help in the long run. Rather, it will further worsen the financial health. So, our advice to a stressed or an NPA borrower is DON'T fear NPA. Try to buy time legally, don’t pay the bank by new borrowings, and protect the valuable assets until some funding arrangement is in place to enter into a one-time settlement in the bank.
We help in NPA management and work out strategic solutions to bring the account out of NPA and revive the business. Our team assists with the revival of sick industries, offering a pathway to financial recovery. We look into various NPA legal matters providing varied NPA legal services. We have a team of experienced NPA lawyers who can provide DRT legal solutions, address matters in the National Company Law Tribunal, and the National Company Law Appellate Tribunal under the IBC Act. Additionally, we provide services such as NPA settlement, NPA loan takeover, NPA OTS funding, and revival of sick industries through structured planning and execution.
What is your opinion on bank recoveries through personal assets of the guarantor under IBC?
This is another blow to the entrepreneurs in our country. While doing any business, the promoter is creating assets, generating employment, paying money to the exchequer in the form of various taxes, and has paid crores of rupees by way of taxes to the government. Additionally, crores of rupees have been paid to employees, supporting the livelihoods of many families. When business fails, the entrepreneur has no social security. Then why should one do business?
What kind of gratitude do we express to our community of entrepreneurs?
I do agree that unscrupulous people with fraudulent mentalities should be treated very sternly. For example:
Mr. Nirav Modi or Mr. Vijay Mallya defaulted. In the recovery process, their businesses collapsed, assets became unproductive, lakhs of people became unemployed, and lakhs of people were deprived of their salaries. Consequently, they could not service their loan obligations, thus contributing to the rise in NPAs.
Is it in the nation’s interest to kill an operating unit? If banks can be nationalized, then why can't these businesses be nationalized? Do the nationalization of these businesses, re-establish them, and then resell them. This could help with the revival of sick industries rather than destroying them.
Could you please elaborate on your idea of social security as a recovery through revival and resolution expert?
It is more or less the same thing that I have said earlier, but I will still elaborate. The businessman, over a period of time, has contributed to society and the nation in the form of GDP, employment, taxation, and various other ways. He is also adding to infrastructure.
That being said, one has to view business as a living entity. And if at all it must die, it should die naturally, not through coercion.
Our banking system and legal system are coercively killing these businesses. From a social and rational perspective, we should protect businesses and businessmen so that future generations do not fear entering the business world and instead of seeking jobs, aspire to create them. There must be a motivation to become a job giver rather than a job seeker.
In India, 95% of the population is raised to become job seekers. Our socio-economic and educational systems are such that, from birth, parents strive to provide education and emphasize good grades so their children can succeed in campus interviews and be selected by multinational companies. This creates a slave mentality.
Just the remaining 5% dare to pursue business. Despite this, instead of supporting, protecting, promoting, and encouraging them during difficult times, the present system chooses to destroy them. Is this not a matter of grave concern and against the interest of the entire Indian economy?