I applied for Agricultural Term Loan (ATL) in end of 2006 at SBI.
This ATL is for expanding the Dairy Farm (Purchasing Dairy Equipments, Purchasing Milk Cows, Biogas Power Generation & Vermi-Compost).
After great delay loan was sanctioned in November 2008.
(Note: sbi Did not sanction all the components that were mentioned in the project proposal).
Monthly Installment Starts on April 2009 after Gestation Period of Six months.
Untill March 2009 that is upto the end of Gestation Period only less than 20% of the Sanctioned Loan Amount was released.
One year from Sanction date that is upto November 2009 only less than 55% of the Sanctioned Loan amount was released.
The last laon amoun was released on September 2010.
(Note: Only less than 95% of the Sanctioned Loan Amount was released).
In the Sanction Report by SBI Regional Office it was mentioned that the Commercial Activity should start by January 2009.
Commercial Activity can start only if full loan amount was released.
Without relesing the full loan amount the project cannot take off.
If Project did not take off it is not poosible to generate the income.
Without income it is not possible to pay the monthly installments.
Since I did not pay the Monthly Installment regularly the bank decleared my account NPA.
In 2012 SBI moved to Debt Recovery Tribunal for collecting the Loan Amount with Interest by using the Property that has been mortgaged.
Note: Case is still running
The bank had made great delay in not only sanctioning the loan amount, the bank also did a great delay in releasing the sanctioned loan amount.
This is the scenario.
What kind of law can be used against the bank or any tips on this issue.
Thank You.
