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Once an account is declared NPA by the lender there is a need for settling the matter amicably so as to avoid unnecessary litigation and other Costs. One Time Settlement (OTS) is an opportunity for the Company to be exercised at the right time so as to avoid third party interest being created in the securities placed with the Bank.

After an account is declared NPA, the Bank takes legal action under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (popularly known as "sarfaesi"). The Bank's recovery department moves towards physical possession of assets mortgaged to the Bank for further auction. Apart from public auction of assets the Bank has the right to sell the assets or the entire loan account to Asset Reconstruction Companies. Most of the time delay in One Time Settlement with the Lender/FI/Bank results in complicating the subject when third party interest is created by way of auction of property or take-over by ARC's.

Now the moot point is - How and when one should approach his/her Lender/FI/Bank for One Time Settlement? The answer is ASAP i.e. As Soon As Possible. Since this is a focused activity, chances of a particular issue getting resolved favorably are higher whenever the Industry is in sluggish mode or Economy is reeling under pressure. Whenever the Economy is not performing well and Bankers are struggling with large number of NPA accounts and high degree of provisioning then it is in the interest of the Lender also to welcome the Borrower's move for OTS.

Once the Borrower decides for One Time Settlement Consultants in Delhi (OTS) then it needs setting up of highly professional negotiating Desk for executing the OTS Plan.

The ARK team possesses rich experience and adequate knowledge to handle the situation while negotiating with the lender to get the desired results under OTS move. The essence of One Time Settlement is,the intention and ability to pay the OTS amount and to adhere to the terms of settlement. The OTS plan needs to be drawn and redrawn till the final plan is approved by all the stakeholders. Therefore at all stages of negotiations the OTS team has to work hard with all professional skills on the table.

Through One Time Settlement route the Company as well as Lender/FI/Bank benefits in saving time, money and energy which is otherwise lost in unnecessary litigation. Structuring the deal is the most important aspect of any OTS exercise. The Finance Planner while designing the OTS needs to study the source and timing of funds which are projected to be used for discharging the liability of the Company. The legal team needs to properly vet the One Time Settlement Consultants agreement so that no legal loopholes are left unattended.

Therefore, the complete OTS structure revolves around Source of Funds, Steps/Repayment Schedule, Repayment Terms, Adherence to RBI/Bank Guidelines on the subject, Step-by-Step Release of Securities on payment of OTS funds.

Our work ethics:Transparency with Confidentiality.

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