Truth and Legal
New member
- Bank Name
- Au small finance bank
- Customer Care Number
- 180012001200
- Loss Amount
- 3066187
- Ratings
- Opposite Party Address
- J1 , building , besides Pathak school , sardar Patel Marg, 150 ft ring road , Rajkot Gujrat
1. We have availed a Term Loan for plant and
Machinery under :
a. Enterprises Term Loan - 2.370 DC (FAC-92587) for INR 566.83 Lakhs (Rs.Five Crore Sixty Six Lakh Eighty Three Thousand ).
b.Enterprises Term Loan2.165 DC (FAC-92588) for INR
517.80 Lakhs (Rs.Five Crore Seventeen Lakh Eighty Thousand )
c.Enterprises Term Loan - 2.651 (FAC-92590) for INR 634.03 Lakhs (Rs.Six Crore Thirty Four Lakh Three Thousand ) in total Rs.1718.661akhs( Rupees Seventeen Crore Eighteen
Lakhs Sixty Six Thousand only)
2.That as part of the sanctioned covenant the receivables from Discom were to be directly credited to the AUSFB account and the surplus amount is to be transferred to the borrower current account/ or kept as FD.
3.That the bank has kept the surplus funds in an escrow account and on a cycle of 3 months are transferring the same to my account which is causing a lot of financial cries and working capital shortage as well as loss of interest which is a wrongful loss to my client and wrongful gain-to the bank.
4.That we have fully funded the Debt Service Reserve
Account (DSRA) as required being total amount of Rs.71.86 Lakh( Rupees Seventy One Lakh Eighty Six Thousand only). This DSRA serves as the primary "safety net" to cover interest and principal repayments in the event of cash flow shortfalls.
5.That over and above fulfilling the DSRA, we also made available FDs in lieu of O&M expenses and lien mark till the term loan to the tune of Rs.26.891akhs( Rupees Twenty Six Lakh Eighty Nine Thousand only)
6.Despite the DSRA being intact and FDs provided and all EMIS being paid punctually, the bank is retaining current surplus funds for a cycle of three months (90 days). This retention is not supported by any specific clause in the Loan Agreement and constitutes an "Unfair Contract Term" under the Consumer Protection Act, 2019, as it imposes an "unreasonable obligation or condition which puts the consumer to disadvantage".
7.As upheld by the Supreme Court of India (IL&FS vs HDFC), a borrower. maintains rights and interest in the residual deposits (surplus) that exceed the principal and interest for which the security interest was created.
8. The refusal by the bank to release funds on a monthly cycle is causing a severe working capital crisis. By holding these fund interest-free for 90 days, the bank is gaining an unearned financial advantage at the cost of Our Client's business operations.
THEREFORE WE ASK FOR :
a.Immediately release the surplus amount of Rs.30,66,186.90/-
( Rupees Thirty Lakh Sixty Six Thousand One Hundred and Eighty Six Rupees and Ninty Paise only)( jointly calculated from the three accounts ) to my operative account ONIX RENEWABLE LIMITED JV WITH ONIX TECH POWER LLP .
b.Implement a monthly "sweep-out" of any funds exceeding the immediate next month's EMI and statutory dues.
c.In the alternative, link the escrow surplus to an interest bearing Flexi-FD/Sweep-in facility to prevent financial loss to Our Client during any retention period.
Machinery under :
a. Enterprises Term Loan - 2.370 DC (FAC-92587) for INR 566.83 Lakhs (Rs.Five Crore Sixty Six Lakh Eighty Three Thousand ).
b.Enterprises Term Loan2.165 DC (FAC-92588) for INR
517.80 Lakhs (Rs.Five Crore Seventeen Lakh Eighty Thousand )
c.Enterprises Term Loan - 2.651 (FAC-92590) for INR 634.03 Lakhs (Rs.Six Crore Thirty Four Lakh Three Thousand ) in total Rs.1718.661akhs( Rupees Seventeen Crore Eighteen
Lakhs Sixty Six Thousand only)
2.That as part of the sanctioned covenant the receivables from Discom were to be directly credited to the AUSFB account and the surplus amount is to be transferred to the borrower current account/ or kept as FD.
3.That the bank has kept the surplus funds in an escrow account and on a cycle of 3 months are transferring the same to my account which is causing a lot of financial cries and working capital shortage as well as loss of interest which is a wrongful loss to my client and wrongful gain-to the bank.
4.That we have fully funded the Debt Service Reserve
Account (DSRA) as required being total amount of Rs.71.86 Lakh( Rupees Seventy One Lakh Eighty Six Thousand only). This DSRA serves as the primary "safety net" to cover interest and principal repayments in the event of cash flow shortfalls.
5.That over and above fulfilling the DSRA, we also made available FDs in lieu of O&M expenses and lien mark till the term loan to the tune of Rs.26.891akhs( Rupees Twenty Six Lakh Eighty Nine Thousand only)
6.Despite the DSRA being intact and FDs provided and all EMIS being paid punctually, the bank is retaining current surplus funds for a cycle of three months (90 days). This retention is not supported by any specific clause in the Loan Agreement and constitutes an "Unfair Contract Term" under the Consumer Protection Act, 2019, as it imposes an "unreasonable obligation or condition which puts the consumer to disadvantage".
7.As upheld by the Supreme Court of India (IL&FS vs HDFC), a borrower. maintains rights and interest in the residual deposits (surplus) that exceed the principal and interest for which the security interest was created.
8. The refusal by the bank to release funds on a monthly cycle is causing a severe working capital crisis. By holding these fund interest-free for 90 days, the bank is gaining an unearned financial advantage at the cost of Our Client's business operations.
THEREFORE WE ASK FOR :
a.Immediately release the surplus amount of Rs.30,66,186.90/-
( Rupees Thirty Lakh Sixty Six Thousand One Hundred and Eighty Six Rupees and Ninty Paise only)( jointly calculated from the three accounts ) to my operative account ONIX RENEWABLE LIMITED JV WITH ONIX TECH POWER LLP .
b.Implement a monthly "sweep-out" of any funds exceeding the immediate next month's EMI and statutory dues.
c.In the alternative, link the escrow surplus to an interest bearing Flexi-FD/Sweep-in facility to prevent financial loss to Our Client during any retention period.