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OTS option for coop societies’ loan borrowers against property, gold

Last date for availing benefit is March 31, 2024

PANAJI
In a bid to minimise the non-performing assets (NPAs) of the Cooperative Credit Societies and to provide relief to their borrowers, who failed to clear their dues despite settlement scheme, the State government for the very first time has introduce a One Time Settlement (OTS) option for those depositors, who opted for loan by mortgaging their immovable property and against the gold.

The Registrar of Cooperative Societies had in 2020 notified the OTS scheme for borrowers of cooperative credit societies with several extensions to assist borrowers to settle loans that they are unable to clear because of the economic impact of the Covid-19 pandemic. However, the scheme had not included Gold loan and Dam Dupat Scheme.

The scheme is applicable to all the primary agricultural credit, multipurpose, urban cooperative credit societies registered in Goa where the loans which are classified as NPAs upto March 31, 2020 are still outstanding. The last date for availing the benefit under the scheme would be March 31, 2024 with no extension.

Under the Double the Principal Amount (DamDupat Scheme), the loans upto Rs 25 lakh outstanding with or without collateral security of movable and immovable assets or property will be compromised. In case any loan is overdue for more than seven years preceding the cut of date of March 31, 2022 and loan amount which has remained unpaid or outstanding after expiry of sanctioned period exceeding three years by March 31, 2022 can be settled under the scheme.

“Settlement can be done provided that the total amount recovered shall be at least double the principal loan availed. Compromise amount to be payable preferably in lump sum latest within 60 days of the approval with minimum 10 per cent of the approved amount to be paid up front,” Registrar Manuel Barreto said in a notification issued.

In the case of Gold loan, the government has said that the value of security should be adequate to recover the entire loan outstanding; however despite disposing off the gold ornaments deposited, some outstanding amount remains, the same should be covered under the scheme subject to no fraud or fake gold.

The scheme will not cover the loan availed by sitting directors or members of the managing committee or ex-directors and their families.


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