TheFreePassToLargeBadBorrowers

The ACTUAL recovery rate for bad loans thus far is less than 14%. 

1. A loan magnate establishes a company and borrows 100 crore, in the name of company.
2. The 100 crore is borrowed , for the COMPANY , with assets worth a market value of Rs 40 crore. 
3. The asset is sold to Asset Reconstruction Companies(ARC) for Rs 14 crore. 
4. The asset reconstruction company is often co-owned by the same loan magnate.
5. Hair cut due to "over assessment" is 60 crore and hair cut due to bankruptcy is 26 crore. The loan magnate, in total gets away with Rs 86 crore.

Example:

1. Synergies Doorey had the recovery rate of 6 % in which financial creditors could recover only Rs 54.7 crore out of total claims of Rs 972.2 crore.

ABYSMAL RECOVERY of 14% , at ABYSMAL RATE 7%, and becoming WORSE.


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