We negotiate Board-approvable One Time Settlement (OTS) proposals with Indian Bank, Indian Overseas Bank, State Bank of India and other lenders active in Tamil Nadu — with sanction letter, No Dues Certificate (NDC) and CIBIL/CIC closure as the final deliverable.
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.
OTS outcomes in Tamil Nadu typically settle at 45–65% of the outstanding principal for viable secured exposures, with lower recovery bands for older, doubtful accounts. The exact discount depends on collateral coverage, Indian Bank/Indian Overseas Bank recovery policy and the age of the NPA. Indian Bank and Indian Overseas Bank publish periodic non-discretionary OTS windows; State Bank of India tends to negotiate case-by-case above ₹1 Cr.
Small NPAs (typically under ₹25 lakh) get sanctioned at the branch; mid-size at the circle-level SARB; exposures above ₹5–10 Cr usually go to Zonal Committee or Board. In Tamil Nadu, Indian Bank's SARB sits at Chennai for larger exposures.
Case A: Chennai-based Tirupur MSME, Indian Bank exposure ₹1.8 Cr, NPA since 2022 — OTS approved at 52% (₹94 L) with 25% down and 9-month tail. Case B: Coimbatore-based Coimbatore unit, Indian Overseas Bank exposure ₹68 L, doubtful — OTS approved at 41% with 100% payment inside 90 days.
Common derailers: unpaid statutory dues (GST/PF/ESIC) that trigger wilful-defaulter examination; ongoing SARFAESI auction that reduces the bank's incentive to settle; wilful-defaulter tag under the July 2024 RBI Master Direction. Our diagnostic flags each of these before we file.
Writ jurisdiction seat.
Tamil Nadu is the only state with three functional DRT stations — Chennai (3 benches), Coimbatore, Madurai — plus DRAT Chennai as appellate seat.
Tirupur knitwear cluster; Coimbatore textiles & pumps; Sivakasi printing & fireworks; Chennai auto ancillaries
Auction / procedural note. Madras HC is proactive with writs where auctions are conducted without proper Rule 8(6) notice — a 30-day clear notice defect regularly leads to auction being set aside.
