| Address: | Mumbai City, Maharashtra, 400056 |
To: corporate. [protected]@herofincorp.com, customer care
25/1/2019
Dear sir,
We have received your letter dated 16/1/2019 (Attached to this email for your ready reference). We are surprised and shocked with the contents of the said letter.
We feel yet again, we need to remind you that our sanctioned loan amount was rs 3 crores, against which you have released only 1.5 crores. Since that sufficed our requirements at the time of the release we accepted the rs 1.5 crores. As collateral we have given you our property of rs 75 crores. At the time of sanctioning of the loan, we were given the formats of the documents that needed to be executed by us with the lessee. They were simply given to us as a format and not as absolute. The same would need to be customized specific to our transaction, as no two transactions are alike. We had already submitted our edited versions of those formats before the sanctioning and disbursement of the loan (Please note). This can be easily understood by hero as they provide customized financial solution to various customers as per their requirements and not a standard solution for all customers. We are in touch with your officers, mr punit, mr pradeep and mr haresh mehta, to discuss the pending paper work issue and to resolve the same as soon as possible. However till date we have not received any reply from anyone as we feel they do not have any authority to take a decision for the same.
Needless to remind you the lessee is m/s ashoka buildcon limited., being a public limited company they are bound by rules and regulations of their company. Certain conditions of those documents in question here, are not acceptable to ashoka. They simply wish to either work within the 4 corners of the rent agreement or to vacate the premises, they have more than 6 such premises within mumbai. They give us total rental of 18 lacs per month in various heads. If for any reason they vacate the premises due to this documentation issue, who should be held responsible for the loss incurred by us. The rent agreement executed between us and ashoka was prior to ours i. E hero and us. The same cannot supersede the old agreement.
Your primary requirement of the rent be paid into an escrow account, is acceptable to ashoka and to us. Today your emi is about 2.45 lacs, whereas the rentals received in that particular head is 6 lacs plus gst. Ashoka’s and our main constrain is that the additional amount and the gst which is received in the escrow account, be returned to us immediately. If the same is not done by hero then ashoka would not release the next month’s rent as the gst would remain unpaid. We were informed by your officers that this condition was not acceptable to hero. We fail to understand the intention of hero here. Does hero wish to keep the 6 lacs of the rentals against the emi of rs 2.45 lacs. If so what was the whole point of creating a emi schedule. We feel someone who has authority should sit down with this issue and clear this. Because as businessmen, it is but obvious that hero should not claim any amount over and above the emi. Maybe we have misunderstood hero and feeling cheated at the moment. A
Another issue was that your documents asked for possession of the said property upon demand of hero. Dear sir, i wish to ask you that is the reantals are paid on time to the escrow account then why would hero ask for possession. We added to all the documents that if the rentals are not paid by ashoka in the escrow account then after following due process of law, all measures can be taken by hero. Which is right in law and any other condition of directly taking possession of a 75 crore property for the dues of 1.5 crore is no lawful. Besides this fact, ashoka is a renokned name in their industry, they have installe a plant of more than 3 crores and are doing business from this property since over 7 years. How can they accept the condition of vacating the premises on demand of hero.
The again as businessmen, we understand the insecurity of a lender and so we have already taken precautions and have mortgaged the entire property worth 75 crores with you. You have hypotheticated the rentals of premila m shah to give in escrow account which ashoka and us have no issues with.
Today, total rentals received from asoka buildcon ltd is rs 18 lakhs per month, 3 other heads i. E. M. P. Shah / chirag m shah / international chemical company are getting nearly rs 13 lakhs, which again go to another escrow account with another financial institution so in that case they are not asking more than emi and how can they be secured if you demand direct possession from ashoka or us. The safety of asoka buildcon ltd machinery and plant worth rs 3 crores and how other banks escrow account will be secured.
You are requested to clarify the above issues with someone who can disucss this with us and take a decision on it. We have already talked with your haresh mehta and he said that we would arrange a meeting with senior credit manager to solve these problems.
Please note the balance disbursement of rs 1.5 crores is not disbursed to us so we are facing acute finance problem. This is the main reason we cannot complete our project and we are incurring more than rs 20 lakhs loss per month, you are responsible for this loss. Please clarify the matter immediately; otherwise we have to approach another financial institution for our requirement to replace your holdings in the mortgaged property. Please note that we have mortgaged property worth rs 75 crores. If you see our last 10 years financial records we have not paid single day overdue interest from where we have taken loans. Our personal guarantee is with you that totals assets of over rs 150 crores and your amount is just rs 3 crores and you have disbursed only 1.5 crores.
We have already time and again complained to pradeep tiwari who is our rm and have written letters in customer care for the same.
You are requested before writing letter to us you have to check this matter as there is corrective actions needed to be taken at your end. We would expect your letter dated 16/1/2019 asking for additional amounts to be withdrawn. We also reserve our rights to claim damages from hero, for the losses incurred by us due to non-disbursement of the remaining sanctioned amount, which is our urgent requirement as the same will be out working capital.
Once again we request you to clarify the matter within 1 week from the receipt of this letter. If for any reason hero cannot resolve the above issues then please send us a letter withdrawing your loan facility so we can approach our potential options with other financial institutions as the limitations to perform are found to be with hero.
Thanking you,
Yours faithfully,
Mahendra p shah/ chirag m shah
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