Restructuring proposals under the RBI June 2019 Prudential Framework — for viable Gujarat 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 Surat diamond & textile and Morbi ceramics units in Gujarat. 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 Gujarat, TEV is a common bottleneck — plan the agency selection and site visit at the start of the 180-day window.
For Surat diamond & textile 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.
Two DRT benches at Ahmedabad cover the entire state including Surat, Vadodara, Rajkot and Bhavnagar borrowers.
Surat diamond & textile; Morbi ceramics; Jamnagar brass parts; Bhavnagar ship-breaking
Auction / procedural note. Gujarat SARFAESI auctions frequently involve GIDC industrial plots — buyer must obtain GIDC transfer NOC after sale certificate, adding 30–60 days.
