Restructuring after npa and sale notice

Best take your valuable opinion and keep it before them discuss the issue and try to resolve the same amicably

Restructuring of loan is at the discretion of the bank. You may try for that. If bank has already classified the a/c as NPA, if bank is agreeable, you can remit the defaulted amounts and get the a/c re-classified as   Non-NPA. If bank had already taken measures under SARFAESI by issue of Demand Notice u/S13(2), then you can make your written objections within 60 days from Notice. If Possession Notice or Sale Notice issued you can prefer Appeal before DRT within 45 days, from each through an advocate conversant with DRT & SARFAESI proceedings.

As rightly stated by Mr.O.F. Raju, there is no scope for restructuring of a loan account which is classified as NPA in the books of accounts of the bank. NPA restructured continues its status as NPA (a burdensome accopunt in the bank's balance sheet) warranting it's quick elimination from the books. Hence the bank may not agree for restructuring of NPA.

Restructuring is possible only in cases of Border Line Performing Assets i.e.before an account slips to NPA.

OTS cannot be claimed as matter of right unless evolved by RBI under it's policy (which has statutory flavour). However you may approach the higher authorities in the bank and seek for a settlement under the bank's Corporate Comprehensive Compromise Policy if any in practice. All the Nationalised banks have adopted Corporate Comprehensive Compromise Policies under Settlement Management Policy in 1998-99. Please enquire the bank and seek for granting any such relief(s) to you.