Restructuring proposals under the RBI June 2019 Prudential Framework — for viable Assam businesses seeking to reset tenor, moratorium, working-capital cycle or interest rate before the account slips to NPA / Doubtful.
This page is for general information. It is not legal, tax or investment advice. Every NPA / SARFAESI / DRT matter is fact-specific — speak to a qualified advisor before acting.
Restructuring is the right path when the business is viable but cash-flow is temporarily stressed — typical for Tea gardens and Oil & gas ancillaries units in Assam. OTS is right where viability is broken and the choice is between settlement discount and continued default interest.
The 7 June 2019 RBI framework replaced legacy schemes (CDR, SDR, S4A, JLF) with a lender-driven Inter-Creditor Agreement (ICA) approach. Key trigger: any account in default is reviewable inside 30 days; a Review Period of 180 days follows, within which the ICA restructuring is finalised. Failure triggers additional 20% + 15% provisioning by lenders — a strong incentive to close inside 180 days.
A Techno-Economic Viability (TEV) report from a Category-I RBI-empanelled agency is mandatory for exposures above ₹100 Cr and industry-standard for exposures above ₹25 Cr. The TEV report drives the tenor, moratorium and coupon proposed to lenders. In Assam, TEV is a common bottleneck — plan the agency selection and site visit at the start of the 180-day window.
For Tea gardens units, the working-capital reset typically involves: (a) reassessment of MPBF/Turnover Method limits, (b) reset of drawing power basis stock/book-debt margin, (c) release of ad-hoc limits into regular sanction. Under the current RBI framework, working-capital reassessment can be part of the ICA restructuring without triggering standstill on standard classification.
Writ jurisdiction seat.
DRT Guwahati serves Assam and the wider Northeast (Nagaland, Manipur, Mizoram, Meghalaya, Arunachal, Tripura).
Tea gardens; Oil & gas ancillaries; MFI-borrowers (post-2020 stress); Retail trade
Auction / procedural note. Tea-garden auctions require Tea Board and Assam government approvals; buyer universe is narrow.
