ICICI Bank Limited — insistence of payment of foreclosure charges

Address:

GLOBOSPORT INDIA PRIVATE LIMITED,183/4 KODIGEHALLI, THINDLU MAIN RAOD, VIDYARANYAPUR POST, BENGALURU 560097

Loan against property (Lap) – globosport india private limited

Complaining about bank’s (Icici bank) insistence on foreclosure charges despite giving us serious problems including depositing a security cheque for payment; filing a case against us for return cheque. We gave sufficient notice that we were getting into cash flow squeeze and requested help. Extremely unco-operative and offensive officials of icici bank. We are in the process of selling some of our properties and made the emis up to date plus arranged with another bank to take over the loan outstanding. However, despite turning all the pressure on us including sending representatives to the site and our office, they are insisting upon foreclosure charges. We wish to move away from this bank but do not wish to pay foreclosure charges, they even penalised us severely for delay in payment of 3 emis and our repeated requests to consider not levying penal charges were completely ignored.

The company m/s. Globosport india pvt ltd, directors: mahesh bhupathi & krishna bhupathi.

Borrowed from icici bank

Product: loan against property (Lap.

Loan account numbers:

1. Nhbng[protected] – borrowed rs. 2, 01, 60, 000/- in january 2009 from icici home finance company at 15.25% roi, while the roi on prevailing market condition were 11% for lap loan. Current interest 13.40%. Zero response for repeated requests to reduce rates to prevailing rates.


2. Nhbng[protected] - borrowed rs. 2, 25, 00, 000/- in august 2008 from icici home finance company at 15.75% roi, then prevailing market rate 11% for lap loan. Current rate: 13.90%.


3. Lbbng[protected] – borrowed rs.6, 50, 00, 000/- in september 2016 from icici bank at 10.50% roi. The rate 9.80%


· december 2017 wrote to the regional credit head – m/s. Icici home finance company ltd, requesting restructuring of the 3 loans: explained our cash flow squeeze and plan s to recover.

Asked for moratorium for 18 months before resumption of payments.

No response was received.

· 04rd feb 2018, emailed follow up for “restructuring the loans”. Delivered hard copy. No response. 09th march 2018, spoke to the regional credit head of icici home finance

· 13th march 2018, emailed the regional credit head.

04th april 2018, followed up with other officers of the bank.


· 23rd april first written response: “we are in receipt of your request. We appreciate the concerns and challenges faced, we can’t waive the repayment for any period. Shall revert.


· no solution provided despite us having paid over rs.6.37 crores of interest payment.

· received mail: there cannot be any discounted settlement. Please clear the emi’s pending on priority.

· mail informing “loan has been identified as a threat to being categorized as a 'non performing asset”.

07th august 2018 debt service management group visited asked for plan of for payments by 10th aug.

· 13th august 2018 mahesh bhupathi wrote requesting restructuring. No response.

· 11th september 2018 debt service team reminder for the outstanding emi payment.

· we sold many of our assets, encashed ilife insurance and sold shares to avoid labelled npa.

· 15th october 2018 debt service team reminder.

· 21st november 2018, zonal debt manager – mortgages visited our office.

· 22nd november 2018 spoke to zonal head. Requested rate reduction on all loans to 9.60

· 23rd november 2018 zonal debt manager tenure extension & rate reduction to 9.6% not possible.

· november 2018 deposited “security cheque” of rs.67, 20, 000/- for payment without advising us.

· did not inform us that cheque bounced.

· file a case against us under section 138 of negotiable instrument act.

· we received the notice from court asking our director to appear on 08th april 2019 before the xiv additional small causes judge, bangalore city.


· 02nd august 2019, sold propery & paid rs.67, 20, 000/-


· property sales have enabled us to pay regularly. Interest rate not reduced.


· requested repeatedly to allow us to repay in full without their “foreclosure charges” of 4% + gst.


· repeated instant point blank refusal to wave any penalties.

· availed covid moratorium for april & may 2020