Dubai Real Estate Investors: AI-powered NUDGE Notice

       

The primary “Nudge” campaign in India refers to a massive income tax compliance initiative launched by the Income Tax Department and the Central Board of Direct Taxes (CBDT). The term also describes the broader use of behavioral economics (nudge theory) in various flagship government missions. 




The Income Tax “NUDGE” Campaign, formally known as Non-intrusive Usage of Data to Guide and Enable (NUDGE), is a data-driven initiative that aims to increase tax compliance through voluntary self-correction rather than immediate legal enforcement. 

The ODFC FEMA Helpdesk offers nationwide services for seamless FEMA compliance, with specialized support for foreign real estate investments. These services ensure Indian investors navigate RBI regulations effortlessly while leveraging high-ROI opportunities in foreign markets. Contact the ODFC FEMA Helpdesk anytime via ODFC.app, email at ask@fema.in, or chat at +91-8850585672.

📌 Foreign Assets (NUDGE 2.0) targets undisclosed foreign assets and income identified through automatic global data-sharing frameworks like CRS and FATCA.

📌 Selected taxpayers receive “nudges” via SMS and email alerts advising them to file a revised return.

📌 The window for filing revised returns for AY 2025–26 without additional penalties ended on December 31, 2025.

📌 By December 2025, over 15 lakh (1.5 million) revised returns have been filed for the current year and over 21 lakh updated returns for previous years, generating more than ₹2,500 crore in additional tax.

The ODFC FEMA Helpdesk streamlines Dubai property investments for Indians under FEMA and LRS (up to USD 250,000 annually), associated with the OZG Properties for remote buying. OZG Properties offers high-ROI apartments and villas with reputed developers ensuring transparent deals. The ODFC FEMA Helpdesk ensures ODI reporting and repatriation compliance for seamless wealth growth.

The ODFC FEMA Helpdesk provides end-to-end RBI compliance filings for FDI, ODI, LRS, and cross-border transactions. The expert team at the OZGIAN handles documentation, KYC coordination, and AD bank liaison to avoid penalties. We assist you with NUDGE alerts on foreign assets, guiding you step by step to avert scrutiny. Integrate foreign investments with AIS disclosures via ODFC FEMA Helpdesk for CRS/FATCA alignment.

⭕ ODFC.app  

📩 Email: ask@fema.in

📞 Chat: +91-8850585672

ODFC Webinar: Crypto Wallet & Forex Trading

   

The cryptocurrency and forex trading have become new ways of investing and earning in today's era. Crores of youth in India are now getting attracted towards digital assets and forex. In this ODFC post, we will understand what crypto wallets are, how they work and their relation with forex trading.




🎯 1️⃣ What is Crypto Wallet?

A crypto wallet is a digital application or device in which your cryptocurrency is directly connected to the blockchain network. Actually, your cryptocurrency is not 'stored' anywhere, but it is on the blockchain itself and the wallet simply shows the balance associated with your public address.


🎯 2️⃣ 👜 Types of digital wallets -

Software Wallets:

(e.g., Binance, Meta Mask, Coinbase): These are mobile or computer apps, which are easy to use, but they are connected to the internet, so they can be a little risky.

Hardware Wallets:

(e.g., Ledger Nano, Trezor, SafePal): These are physical devices, which are disconnected from the internet, so they are considered the safest.


🎯 3️⃣ Wallet Setup & Usage:

Setting up a wallet is easy. All you need to do is download the app, create your account and keep the passphrase/private key safe for security. For the transaction, enter the receiver's wallet address, select the amount, and sign with the private key and send it. To receive, just share your address.


🎯 4️⃣ What is Forex Trading?

Forex (Foreign Exchange) trading is the world's largest currency market, where people exchange fiat currencies like dollar, euro, yen with each other. Profit is made from currency fluctuations. Many online platforms in India provide forex trading facilities. For more information, please visit forex.odfcdigital.com.


🎯 5️⃣ Relation between crypto wallets & forex trading?

Now, many forex platforms have also started offering cryptocurrencies as a trading option. This means that you can also exchange digital currencies like Bitcoin, Ether in the forex market. For this, you have to transfer funds from your crypto wallet to the forex account. Sometimes wallets can also be used directly for trading.


🎯 6️⃣ ODFC Digital Community -

The market of digital assets is growing very fast day-by-day. Before entering it, many people have the fear of account freeze or crypto tax complications. By joining the ODFC Digital Community, you can know how crypto tax is levied in India and what rules are necessary to follow for crypto or forex trading so that your account will not be frozen. The ODFC digital community initiative is writing a new story of awareness and financial freedom in the lives of youth across 750+ districts in India. Visit 0DFC.com for more information.


WhatsApp 🪀 8779696580 
ODFC Digital Helpdesk (INDIA)

ODFC Cybercrime Helpdesk (Tamil Nadu)

  

What is the ODFC Cyber Helpdesk?


The ODFC Cyber Helpdesk is a support service focused on assisting victims of cybercrimes, especially those involving virtual assets like crypto, forex trading, online gaming, task-based jobs scam, and UPI fraud etc.



— Sextortion Victim Helpdesk started in 2020 by the ODFC DIGITAL is an emergency support service. To report cases, please write an email with proofs.


Email 📨 help@sextortion.in || Website: sextortion.in


— The ODFC digital platform operates 24/7, and it is available across India in 750+ districts. If you are a victim of cybercrime, then get the ODFC Cyber Helpdesk's step-by-step support and guidance throughout the resolution process.


— Assistance with complaint documentation and evidence collection.


— Guidance on interacting with police, cyber cells, and banks.


— Access to legal experts from the regional ODFC Community (if needed).



How to use ODFC Cyber Helpdesk?


1. File a Complaint: 


First, file your complaint on the national cybercrime reporting portal (cybercrime.gov.in).


2. Contact to the ODFC Helpdesk: 


Reach out to the ODFC helpdesk with your complaint details, supporting documents, and proofs.


— WhatsApp: 8779696580 

— Email: cybercrime@odfc.co.in


Note: Always keep records of your complaint and communication for follow-up.


3. Follow Guidance: 


The ODFC team will guide you on the next steps, which may involve communication with police, banks, or legal experts.



Fee & Subscription - 


— ODFC team charges a nominal subscription and upfront fee for its services that help to sustain its operations. 


— Sextortion Victim Helpdesk is 100% FREE.



How can I join the ODFC Digital Community?


One can join the ODFC Digital Community by filling out the introduction form available on the ODFC Digital platform. 


The FREE membership allows the cybersecurity experts and legal professionals to learn better and connect with others in the community. 



— WhatsApp: 8779696580 

— Email: help@odfcdigital.com

P2P Trader - Bank Account Defreeze


It seems you are searching for information about a bank account freeze issue related to your P2P (Peer-to-Peer) trading activity. If yes, then you need help from the ODFC Cybercrime Helpdesk. 

Please follow these simple steps.

1. Reach out to ODFC: 

Contact the ODFC Cybercrime Helpdesk Chat. Provide detailed information about your situation, including any police notice with relevant transaction records and communication with your bank. Clearly describe the account freeze, the reasons cited by your bank (if any), and any suspicions of cybercrime or fraudulent activity related to your P2P trading.

2. Pay Upfront Fee:

You will be asked to pay a nominal upfront fee depending on your case. Please, pay it from your other account and keep the record of it. 


3. Cooperate with the ODFC Cyber Team: 

Provide any requested documentation or information to support your case. ODFC cyber experts will guide you through the process and help you address the issue step by step.

4. Follow instructions: 

Based on ODFC's guidance, take the necessary steps to resolve the issue, which may involve communicating with the concerned police department, your bank etc. Remember to stay calm, cooperative, and transparent throughout the process. ODFC Cybercrime Helpdesk is there to assist you in resolving the issue and unfreezing your bank account.

ODFC Cybercrime Helpdesk
Email 📬 cybercrime@odfc.in

WhatsApp📱 8779696580

Senior Citizens: Needs, Priorities & Solutions


“Imagine if you are an older person sitting on the couch, slowly staring at the smartphone and thinking about what are the major mistakes you've done in the past or recalling turning points in your life etc.” Often we do not realize it until we face it by self or see a loved one struggling with a problem, but as a society, we can do more to make life easier for our aging family members.

 

Yes, being able to reach old age is something to be thankful for the person, but there are several challenges faced by the older people, which we all need to pay more attention to. It's important to recognize and address these challenges. I'm trying to outline a few of things here — how we can support them that enable them to spend their golden years gracefully. 


1) Wealth = (( Respect ))

In the practical life, all you need to do is to maintain your health, wealth, and behavior, then remaining things will be automatically aligned for you in the ways you always prefer it. But, the traditional mindset and sense of ownership over inherited wealth and properties typically creates conflict in between two generations and leads to bad treatment of aged people. To fill the gap, senior citizens should be provided community-based guidance and professional services like ODFC Wealth so that we can help them to maintain a sense of self-esteem and purpose in life. Learn more about it at: 0DFC.com


2) Finance = (( Comfort ))

The world of retirement has not evolved at the same pace. Many elderly people are willing to work in post retirement age, but the opportunities are not there, or they feel outdated due to slow adoption of new things like using smartphone etc. Hence, learning and taking the right step for retirement planning is equally important in life. You can find more about it at retirement planning website of the ODFC:👇 retirement.odfc.in


3) Social Security = (( Stability ))

The concept of family based social security has been widely influenced with new digital age. We follow the cultural template of life (which are the adherence to our religious beliefs) and assume that we will be treated better in old age. But it doesn't always happen. Moreover, we can see many visible economic divides in terms of social security not just in cities but also in semi-urban and rural areas – a) marginalized vs. isolated; b) employed vs. jobseeker; c) Govt. pensioners vs. non-pensioners; d) enjoying family support vs. living without family support; e) financially well-off vs. insecure; f) physically fit vs. differently-abled; g) dependent vs. independent; h) no assets' ownership vs. owner of inherited wealth.


4) Legal Rights = (( Obligations ))

- Under Section 125 of the Criminal Procedure Code of India (CrPC), the elder parents can claim maintenance from their children.

- The Maintenance and Welfare of Parents and Senior Citizens Act (2007)—seeks to make it legal for the children or heirs to maintain their parents or senior citizens of the family. 

- Section 20 of the Hindu Adoption and Maintenance Act (1956) makes it obligatory provisions to maintain aged parents.


5) Healthcare Bill = (( Insurance Coverage ))

As you may have heard, 'Health is real wealth', so it should be your priority to maintain it. The quality healthcare services are not easily accessible even in cities. Unlike the United States of America (USA), we don't have a mandatory health insurance system in India. Most of old people are badly affected by the rising prices, especially for those struggling with long-term medical conditions. So, proper insurance coverage is a good idea. ODFC Insurance Experts may help you to review your insurance coverage and help you to get the suitable policies.


6) ODFC Senior Citizens Community -

When you feel down, then your community keep you going and makes you fit. Therefore, regardless of your age band, you must be part of the community. Investment of your time with your friends and new connections pays you back in terms of your mental well-being. We have an initiative to build the ODFC Senior Citizens Community. Membership is open and 100% free. Please, find more about it on the website: seniorcitizen.odfc.in or simply search about it.


ODFC Wealth

📬 ask@odfc.in

🖥️ 0DFC.com


P.S. This article was recently published in local newspaper by our founder.

Financial Planning for Unmarried Couple

     

An unmarried status doesn't make a big difference in the eyes of our legal or financial institutions, as long as you can meet the end goals. The following are some financial products or services picked by ODFC team, you should be aware about being an unmarried or married couple.


👉 Joint Bank Account — 

Unmarried partners can open joint bank accounts and finance purchases together by co-signing loans. If you need a new joint account quickly with any reputed banks, chat at ODFC Helpdesk.


👉 Loan and Debt —

Your partner's credit history and debt won't impact your individual credit information, whether you're unmarried or not. Further, managing your debts with dedicated ODFC account managers keeps you stress-free.


👉 Health Insurance —

ODFC DSA provides the best offer in health policies for couples, if they have stayed together for a certain period.


👉 Auto Insurance —

Many insurers allow you to add a partner to your policy if you share a residence. Some insurers allow unmarried couples with separate vehicles to apply for joint policies if both cars are at the same address. Combining policies can save money, please check with your insurer for specific benefits.


💁🏻‍♀️ Always remember that, being a couple, what does matter is the trust and clear planning. Please ensure that, you mutually agree before taking any financial products or services! Feel free to chat with ODFC Helpdesk for any further guidance.


ODFC Wealth

📬 ask@odfc.in


🩷 instagr.am/odfchelpdesk

RBI - UDGAM: Unclaimed Deposits Website

    

The RBI has launched a new centralized website named UDGAM (Unclaimed Deposits – Gateway to Access Information) on 17th August 2023 – that allows common people to search for unclaimed deposits across multiple Indian banks using a single common portal.



What is an Unclaimed Deposit?

If a savings (or a current) bank account doesn’t have any transactions for more than 2 years then it becomes dormant. The bank is required to contact the customer via e-mail, phone, SMS messaging and/or postal/courier services etc. But if this account/deposit does not see any activity (like deposit or withdrawal) from the account holder for 10 or more years, then such accounts are deemed as Unclaimed Deposits.


RBI - UDGAM - Unclaimed Deposit Search Portal

In India, there are thousands of crores (₹35,000 Crore as per 2022-23 data) lying in various banks as unclaimed deposits. Many banks proactively put out a list of names and addresses of customers with inoperative accounts and unclaimed deposits regularly. Till now one needed to check individual banks’ websites to find unclaimed deposits. Now with RBI UDGAM – the Centralized RBI Portal to Track Unclaimed Deposits, it will become easier for people to search for their unclaimed deposits in a user-friendly manner.


Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS) and participating banks have collaborated on developing the portal. At the time of launch, the search facility will be available for data on unclaimed deposits of only 7 banks on the portal. These are State Bank of India (SBI), Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd., South Indian Bank Ltd., DBS Bank India Ltd., and Citibank. The facility for the remaining Banks in India on the portal will be made available in a phased manner by 15 October 2023.


This post is created by the ODFC - CMS team as per information available on the RBI portal. Please, contact your bank or ODFC - 24/7 Support Chat in case you require services regarding Unclaimed Deposit.


RBI – UDGAM (உரிமைகோரப்படாத வைப்புத்தொகை – தகவல் அணுகலுக்கான நுழைவாயில்) இணையதள இணைப்பு

17 ஆகஸ்ட் 2023 அன்று UDGAM (UDGAM - உரிமை கோரப்படாத வைப்புத்தொகை - அணுகல் தகவல் நுழைவாயில்) என்ற பெயரில் ஒரு புதிய மையப்படுத்தப்பட்ட இணையதளத்தை RBI அறிமுகப்படுத்தியுள்ளது - இது ஒரு பொதுவான போர்ட்டலைப் பயன்படுத்தி பல இந்திய வங்கிகளில் உரிமை கோரப்படாத டெபாசிட்களைத் தேட பொது மக்களை அனுமதிக்கிறது.


உரிமை கோரப்படாத வைப்பு என்றால் என்ன?

ஒரு சேமிப்பு (அல்லது நடப்பு) வங்கிக் கணக்கில் 2 ஆண்டுகளுக்கும் மேலாக எந்தப் பரிவர்த்தனையும் இல்லை என்றால் அது செயலற்றதாகிவிடும். வங்கி வாடிக்கையாளரை மின்னஞ்சல், தொலைபேசி, குறுஞ்செய்தி அனுப்புதல் மற்றும்/அல்லது அஞ்சல்/கூரியர் சேவைகள் போன்றவற்றின் மூலம் தொடர்பு கொள்ள வேண்டும். ஆனால் இந்தக் கணக்கு/டெபாசிட்டில் கணக்கு வைத்திருப்பவரிடமிருந்து 10 அல்லது இன்னும் பல ஆண்டுகள், அத்தகைய கணக்குகள் உரிமை கோரப்படாத வைப்புகளாகக் கருதப்படும்.


RBI - UDGAM - உரிமை கோரப்படாத வைப்புத் தேடல் போர்டல்

இந்தியாவில், உரிமை கோரப்படாத டெபாசிட்களாக பல்வேறு வங்கிகளில் ஆயிரக்கணக்கான கோடிகள் (2022-23 தரவுகளின்படி ₹35,000 கோடி) உள்ளன. பல வங்கிகள் செயலற்ற கணக்குகள் மற்றும் உரிமை கோரப்படாத டெபாசிட்கள் உள்ள வாடிக்கையாளர்களின் பெயர்கள் மற்றும் முகவரிகளின் பட்டியலை முன்கூட்டியே வெளியிடுகின்றன. இதுவரை, உரிமை கோரப்படாத டெபாசிட்களைக் கண்டறிய, தனிப்பட்ட வங்கிகளின் இணையதளங்களைப் பார்க்க வேண்டியிருந்தது. இப்போது RBI UDGAM - உரிமை கோரப்படாத வைப்புகளைக் கண்காணிப்பதற்கான மையப்படுத்தப்பட்ட RBI போர்ட்டல் மூலம், மக்கள் தங்கள் கோரப்படாத வைப்புகளை பயனர் நட்பு முறையில் தேடுவது எளிதாகிவிடும்.


ரிசர்வ் பேங்க் இன்ஃபர்மேஷன் டெக்னாலஜி பிரைவேட் லிமிடெட் (ரீபிட்), இந்தியன் ஃபைனான்சியல் டெக்னாலஜி & அலிட் சர்வீசஸ் (IFTAS) மற்றும் பங்குபெறும் வங்கிகள் ஆகியவை போர்ட்டலை உருவாக்குவதற்கு ஒத்துழைத்துள்ளன. தொடங்கும் நேரத்தில், போர்ட்டலில் 7 வங்கிகளின் கோரப்படாத டெபாசிட்கள் குறித்த தரவுகளைத் தேடும் வசதி கிடைக்கும். அவை பாரத ஸ்டேட் வங்கி (எஸ்பிஐ), பஞ்சாப் நேஷனல் வங்கி, சென்ட்ரல் பேங்க் ஆஃப் இந்தியா, தனலக்ஷ்மி வங்கி லிமிடெட், சவுத் இந்தியன் வங்கி லிமிடெட், டிபிஎஸ் வங்கி இந்தியா லிமிடெட் மற்றும் சிட்டி வங்கி. இந்தியாவில் மீதமுள்ள வங்கிகளுக்கான போர்ட்டல் வசதி 15 அக்டோபர் 2023க்குள் படிப்படியாகக் கிடைக்கும்.


ரிசர்வ் வங்கி போர்ட்டலில் உள்ள தகவலின்படி ODFC - CMS குழுவால் இந்த இடுகை உருவாக்கப்பட்டது. உரிமை கோரப்படாத டெபாசிட் தொடர்பான சேவைகள் தேவைப்பட்டால், உங்கள் வங்கி அல்லது ODFC - 24/7 ஆதரவு அரட்டையைத் தொடர்பு கொள்ளவும்.

Penalty for Non-filing of FCGPR Form


RBI Compliance 🇮🇳 https://firms.rbi.ozg.in

☎️ Chat ₹199 💬 WA.me/918779696580

📮 FREE Advisory by Email 📧 ask@fema.in 

In case, the resident company doesn’t comply with the rules of filing the Form FCGPR, the RBI imposes a substantial penalty on non-compliance of regulations, referred to as “compounding”.


The receiving company needs to complete the FDI Reporting in India by filing Form FCGPR within 30 days of the due date, and the penalty for non-filing of Form FC-GPR would include:

📌 ₹5000 or

📌 1 % of the total amount of investment, which can up to a maximum of ₹5 Lakh or

📌 Part thereof for the first six months of delay and after that rate will be 2 times. 

This compounding amount to be transferred into an RBI’s designated bank account.

Visit to link below -




#ForeignDirectInvestment #FDIconsultant #FemaCompunding #fcgpr #RbiConsultant #EDnotice #OzgLawyers #OzgLaw #FEMAconsultation #FemaCompliance #OCIconsultant #FemaConsultant #ozgfinance #Fema #FcraConsultant #RbiCompliance #odfc #InvestinIndia #FemaConsultants #odfcindia  #FDI

Be an ODFC Ambassador for your District


🏠 WFH √ OZGIAN √ Training

Email your resume to: wfh@ozgian.com


 ➡ ODFC Ambassadors (DSA) are selected based on a passion for their District/City, interaction skills, multiple years of experience in financial sector, and dependability factors.



➡ ODFC Ambassador/DSA Fee ₹192/year. WhatsApp to join our Announcement/Regional Group for Updates and informative posts. 

➡ ODFC is a self-sustainable fintech organization. It was set up by OZG Finance Group. ODFC is available in all districts of India, Please, find your district at ozgindia.com


nft #wfhlife #loanagent #liquidmoney #workfromhome #bankingjobs #homeoffice #visarefusal #bankerslife #directseller #directsellingindustry #directsellingbusiness #cryptocurrency #ODFC #OZGiAN #nonresidentindians #financialfreedom #workfromhomelife #mbafinance #microfinance #financejobs #nriinvestments #financeexpert #beyourboss #wfhjobs #directselling #directsellingindia  #dsa #cryptoinvestor


NPA due to Bank’s mistake – legal remedies available to the Borrower – SARFAESI Act - A Case Study by ODFC


 
Sarfaesi / NCLT / DRT Consultant - Loan Settlement with Banks at ODFC (Ozg Lawyers)- loansettlement.ozg.in

It appears that the SARFAESI Act, 2002 was enacted on the assumption that the Bank will commit no mistake in the course of its business relations with the borrowers. It is understandable as to why the Banks need a special legislation like SARFAESI Act, 2002, but there can not be any justification for not providing an effective remedy to the borrowers in case they have a genuine grievance.
 



The Bank will sanction loans to the borrowers on specific terms and conditions. There can be variety of credit facilities. In the course of adhering to the terms and conditions; like borrowers, the Banks too can commit mistakes and there can not be any doubt in this regard. Looking at the provisions of the SARFAESI Act, 2002, the rules, the practice and few precedents; borrowers and also professionals alike are doubtful in getting relief from the specially constituted Debt Recovery Tribunal which entertains appeals from the borrowers under section 17 of the Act. 

We have heard many borrowers saying that the Debt Recovery Tribunals will support the Banks and their actions, and will not effectively listen to the grievances of the borrowers. Such an assumption on the functioning of Debt Recovery Tribunals and Appellate Tribunals may not be correct though the system needs to look within. The Courts too have understood the difficulties in approaching the Civil Courts in recovering the outstanding dues and the Courts have upheld the provisions of SARFAESI Act, 2002 with few suggestions in the Course.

 The SARFAESI proceeding and litigation, as many feel, goes as follows:

1. The Bank will classify a loan account as NPA (Non-performing Asset) as per the RBI guidelines on Asset Classification etc. It is debatable as to whether it is right to apply the guidelines issued by the RBI mechanically or not. There may be cases where the Bank or the concerned officials believe in the credentials and credit worthiness of a borrower due to past record. Even in these cases, the Bank normally classifies the account as NPA if the borrower fails to meet the agreed commitments and the Bank will rely on the guidelines issued by the Reserve Bank of India. There can be two views on this. If the discretion is given to the Bank in classifying an Account as NPA, will it really benefit the bonafide borrowers?. As such, the law in this regard is that the Bank should follow the RBI guidelines in classifying an Account as NPA and RBI guidelines are mandatory. The classification of an Account as NPA is the preliminary thing before proceeding further in recovering the dues under the provisions of SARFAESI Act, 2002.

2. After classifying an account as NPA, the Bank or the authorized officer of the Bank will issue a demand notice to the borrower under section 13 (2) of the Act demanding the borrower to pay the entire outstanding due as on date.

3. The borrower can raise his objections if any to the demand being made by the Bank under section 13 (2). It is to be noted that if the borrower is silent to the demand notice, the same will be noted when the borrower files an appeal before the Debt Recovery Tribunal under section 17 of the Act.

4. If the borrower raises any written objections to the Bank’s demand notice under section 13 (2), then, the Bank should reply to the objections. The reply is mandatory. The courts have emphasized the need on the part of the Bank to apply its mind properly to the objections raised by the borrower. Borrowers contend that the Bank will not listen to the objections and mechanically reject those. If the Bank finds merit in the objections raised by the borrower, then, the Bank can correct itself and proceed accordingly.

5. If the Banks rejects the objections raised by the borrower under section 13 (3A), then, the Bank will issue a possession notice under section 13 (4) of the Act. It is called symbolic possession.

6. The possession notice issued by the Bank under section 13 (4) of the Act provides a right to the borrower to approach the Debt Recovery Tribunal and file an Appeal if he feels aggrieved.

7. The borrower should pay the prescribed fee while filing an appeal under section 17 and normally the borrower prays for a stay of SARFAESI proceedings. Many borrowers feel that the Debt Recovery Tribunal will ask the borrower to deposit some amount while granting stay if the DRT comes to a conclusion to grant a stay. 

We feel that the borrower need not make a deposit always and the DRT will grant a stay directly without asking for any deposit in some cases based on facts. If the DRT is not inclined to grant a stay and if the DRT dismisses the application seeking stay, then, the borrower is entitled to file an appeal to the DRAT (Debt Recovery Appellate Tribunal).

8. In case where the borrower did not approach the Tribunal and in case where the borrower fails to meet the demand made by the Bank, the Bank will take such steps in taking physical possession of the property under section 14 and can sell the secured asset in public auction etc.

Though the procedure under SARFAESI Act, 2002 appear to be simple, there were many complications in the course. It is presumed that the DRT will only look into the procedural lapses and other disputes pertaining to maintenance of account, violation of terms and conditions etc., can not be looked into by the DRT. Then, where is the remedy to the borrower for his genuine grievance? Is it proper to ask the borrower to approach Civil Court against the Bank paying Court fee and asking for damages etc.? The Civil Court may not be entitled to grant a stay of SARFAESI proceeding in view of Section 34 of the Act. If the borrower approaches the High Court, the High Court may say that the alternative remedy is available before the DRT and as such a Writ under Article 226 is not maintainable. In these circumstances, where is the effective remedy available to the borrower unless the DRT looks into all the genuine objections of the borrower keeping the technicalities apart? It may be contended that if the Bank commits any mistake, then, the DRT can award cost and compensation to the borrower as enshrined under section 19 of the Act. But, the careful perusal of the Section 19 makes it very clear that the DRT can award costs and compensation only when it is provided that the procedure followed by the Bank in proceeding against the secured asset is incorrect. We may not have many precedents where the DRT award compensation to the borrowers. These are the various complications in fighting against the mistake committed by the Bank while classifying an account as NPA and while seeking relief against the SARFAESI proceeding. As such, the entire process to be clear and the DRT should effectively function and grant relief to the borrowers if there is a merit in the borrowers’ contention. If the specially constituted Tribunals supported by Courts fail to function, then, there can not be any meaning in constituting the Tribunals and the High Courts would be flooded with petitions under Article 226 of Constitution of India and petitions under Article 227 of Constitution of India. Dealing with the issue of functioning of Tribunals in India, the Hon’ble High Court of Calcutta in Chanda Engineers (India) Ltd Vs. U.C.O. Bank 2005 AIR(Cal) 28, 2005 (125) CC 708, was pleased to observe as follows:
“(2.) So far as the power of Article 227 is concerned, in earlier, High Courts hardly got any opportunity to apply the power of superintendence under it over the Lower Courts and Tribunals. Number of litigations was much less. Lower Courts had enough opportunity to go through procedural propriety. 

There was no mushroom growing of Tribunals. Only few Tribunals were existing. Provision was normally applied where there was neither any scope of appeal nor any scope of usual revision. But since when various Tribunals either by way of Constitutional amendment or under the respective statutes are formed and also revisional jurisdictions are curtailed by way of amendment of the Code of Civil Procedure particularly in respect of the interlocutory matters, number of applications under Article 227 of the Constitution of India have been increased. Therefore, if the totality of the scenario is projected it will be seen that from when several jurisdictions of the High Courts are curtailed number of making applications under Article 227 of the Constitution of India have been increased. If this is the trend then formation of Tribunals for the sake of people is a big question for the legislature. It is high time to think whether the installation of various Tribunals is really minimizing number of disputes or increasing the number of disputes. ”Thus, the borrower will have to face lot of difficulties once the account is classified as NPA. In cases where the outstanding is only few lakhs and the borrower do not run a big business concern, then, it would really be difficult to face the Banks under the provisions of SARFAESI Act, 2002. There is an issue of work pressure with Tribunals and getting a competent counsel engaged is also a costly thing when the amount outstanding is not much. The borrowers may not really understand the whole procedure and the implications under SARFAESI Act, 2002 and as such there is a need to ignore technicalities and keep the law constant. There were contradictory views on certain issues under SARFAESI Act, 2002. Thus, a wrong classification of an account as NPA will have disastrous consequences though one may say that the law is clear and the SARFAESI Act, 2002 provides a remedy to the borrower to file an Appeal under section 17. 

Sarfaesi / NCLT / DRT Consultant - Loan Settlement with Banks at ODFC (Ozg Lawyers)- loansettlement.ozg.in

We would like to share a case study in this regard and the facts are as follows.

Facts of the Case:

A Bank has issued a notice to the borrower under section 13 (2) of the Act demanding the payment of outstanding being 25 lakhs. The borrower’s contention is that there was a fire accident in the Factory admittedly. The Bank was supposed to process the insurance thing and it is part of terms and conditions of credit facility. However, the insurance claim was delayed to due to the mistake by the Bank in informing the changed address of the borrower to the Insurance Company though the borrower has duly informed about the change of address and other relevant issues from time to time. As the borrower in this particular case is not a willful defaulter, has approached the Bank seeking waiver of interest and penal interest etc. as that was resulted due to the Bank’s mistake. The borrower contention is that he has to suffer a loss of 12 lakhs due to the Bank’s mistake and the Bank continues to charge interest and penal interest against the outstanding though the Insurance Claim was delayed due to the mistake of the Bank. Even after the issuance of notice, the borrower has paid a sum of 4 lakhs initially and 8 lakhs thereafter. The borrower’s query is as to how to get effective relief in this case as he was subjected to heavy loss?. The borrower’s contention is that his account was classified as NPA due to charging of interest and penal interest without looking at the mistake committed by the Bank.

Analysis:

In the case referred to above, it may be easy to say that the borrower can send his objections under section 13 (3A) and can file an appeal challenging the notice under section 13 (4) of the Act. It is also easy to say that the borrower can get compensation under section 19. Practically, the issue is different. Some may say that the borrower can only approach the Civil Court claiming damages and the DRT will only look into the procedural lapses in issuing notice under section 13 (2), reply under section 13 (3A), notice under section 13 (4) of the Act etc. 

Ozg Lawyers @ ODFC

Is Forex Trading Banned in India?


In a press release on 8 September 2022, the RBI provided the list of the entities not authorized to deal in forex and to operate electronic trading platforms for forex transactions under the Foreign Exchange Management Act (FEMA), 1999.

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The RBI reiterates in a press release that resident persons can undertake forex transactions only with authorized persons and for permitted purposes, in terms of the FEMA. While permitted forex transactions can be executed electronically, they should be undertaken only on ETPs authorized for the purpose by the RBI or on recognized stock exchanges viz., National Stock Exchange of India Ltd., BSE Ltd., and Metropolitan Stock Exchange of India Ltd.   

RBI Press Release: 2022-2023/835

📱RBIcompliance.com

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One fine morning you got attracted to some catchy ads on the Internet about how to earn quick money from binary trading. All you need to have an international credit card to sign-up there, through which you can load money on the app and receive income from binary trading. Suddenly, you lost all your money, your bank account and card got blocked for violating FEMA, 1999. If you have a similar story, then feel free to discuss your case with the OZG help desk by simply WhatsApp message or Email to: ask@fema.in




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Binary trading is illegal in India. As per FEMA, 1999 and the guidelines provided by the RBI, binary trading or any form of online trading of forex is not legal in India. 


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