G.       Legal proceedings, OTS etc.

1.         What is meant by conclusion of recovery proceedings?

The recovery proceedings would be stated as concluded after the decree has been enforced and recovery has been completed by the MLI.

2.         Can a lending institution go for one time settlement (OTS) in respect of defaulted cases, which are covered under the Scheme?

Yes.  The lending institution is, however, required to keep the Trust informed.

3.         Who will bear the legal expenses of recovery, MLIs or borrower or CGTMSE?

 Initially the legal expenses will be borne by the MLI. At the time of remittance of recovery proceeds to CGTMSE by the MLI, same may be deducted.