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UAE banks headed for India to recover Rs 50,000 crore

Lets see how Modi regime reacts....
haha this very news is the reaction of the Modi government. A lot of black money deals, Hundi-Hawal, illegal gold go through UAE, and many businesses hoard their wealth in Tax heavens like Dubai.
 
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Brother mine,

Thankyou for the tag!

So it about a $7Bln is outlay... writing it off would be not much pain for UAE consolidated banks... besides Indians do run the banking sector in GCC... from CentralBanks to Commercial ones...

Given the level of backdoor services that Indians provide in GCC ..it is not surprising that they got $1Bln in easy loans to ship off to India...

Indian banking sector is already marred by the NPLs and is somehow floating... unless an independent audit is conducted we wouldn't know the extent of deep red... and then there is pension crisis that no Indian will ever talk about!

There was a time I did advised our common, very dear friend that GCC would do great if it holds on to investing in India just yet... if they invest now they will be buying overpriced, tainted assets... a strategic patience would give them an opportunity of buying cent to dollar... or in bankrupcies...it would be even better..from aviation, logistics, transportation to banking/finance... a lot of fire-sale purchase opportunities.

The pain we are going through in Pakistan is accute...but it will be manifold when the Indian try to restructure their economy...which is still socialist in its construct...underproductive and non-competitive.

Coming to these loans...well.. I think UAE banks must forget about it... heist has been complete now they can lick their wounds and inform the investors... or should have thought before enjoying backdoor services...

'Personal Guarantee' ... for heaven's sake... without colletral...how could the extend loan?

Even the Chinese banks are finding about these personal guarantees...when that brother of richest Indian is claiming to be broke...

Indians work with very different business strategies...

My sense is that this is just a beginning of learning curve for our esteemed GCC friends... but then money is no problem.. so who knows...

We should continue with our own reforms... however painful they might be.. structure the fundamentals on basis competitive economy and investor protections for SEZs....

It is going to take us another 3.5 years to see the results of these reforms..when we can embark on balanced growth and healthy economic foundations...

Goodluck to UAE banks!

Mangus


It's just that Indians call Pakistanis beggars for just asking KSA and UAE to provide 6 billion in unusable deposits.... I thought it will be a good read for Indians to see their faces in mirrors..
 
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MUMBAI, Maharashtra: At least 9 banks from the UAE are in the process of initiating legal action against Indian defaulters to recover around Rs 50,000 crore, after New Delhi made the rulings of Emirati courts in civil cases enforceable here.

While most of the cases involve corporate loans taken by Dubai or Abu Dhabi-based subsidiaries of Indian companies, action is also being planned against individuals, two people with direct knowledge of the matter said.

These banks include UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank. A few other lenders such as Doha Bank, National Bank of Oman and National Bank of Bahrain, that have exposure to Indian entities or citizens through their branches in Dubai or Abu Dhabi, also have either already moved courts in the UAE or are in the process of doing so in the coming weeks, the people said.

“Most of the cases are of corporate loans and that is also the priority for the banks as the amounts involved are huge. But some banks also have retail loan exposure to India,” said one of the people. Most of the loans were taken in the past 10 to 15 years.

The Indian government on January 17 issued a notification allowing the decrees of certain UAE courts in civil cases to be enforceable in India. This means a UAE bank, if it has a court order in its favour against a defaulter who has fled to India or no more has operations in the Emirates, can seek to enforce it here like any local lender to recover the money.

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“Earlier UAE-based banks had no recourse to enforce judgements directly to recover their corporate or retail loans given to Indians in the UAE, but now they can take action in India. So, now UAE banks can initiate execution proceedings in India after they take a decree from a UAE court and may also explore initiating proceedings under the IBC (India’s Insolvency and Bankruptcy Code),” said Ajay Monga, a partner at law firm SNG & Partners.

According to the people in the know, these banks have approached Indian law firms to assist them in completing the legal process here, such as serving notices on the defaulters or approaching the National Company Law Tribunal (NCLT), which deals with IBC cases.

Emails sent to Emirates NBD, Abu Dhabi Commercial Bank, Doha Bank, Mashreq Bank, National Bank of Oman and National Bank of Bahrain did not elicit any response till press time Friday.

“The banks could first issue notices and see the response of the defaulter,” said a senior lawyer advising one of the banks in a Rs 300 crore corporate loan default. “The banks could also approach the NCLT or even invoke personal guarantees,” he said. Besides, they could look at filing criminal cases in India against the individuals involved.

In its notification, the Ministry of Law and Justice said the UAE would be a reciprocating territory under section 44A of Civil Procedure Code.

The section essentially says that any decree passed by the superior courts of any “reciprocating territory” may be executed in India, as if it has been passed by Indian courts. Similarly, the UAE will allow the rulings of Indian courts in civil cases. The government notification allows the ruling of two UAE-based federal courts and five other courts to be enforceable in India.

“This notification ends confusion as to whether UAE is a reciprocating territory or not. Earlier, the bilateral agreement between the two nations to provide for the recognition of foreign judgements was not acceptable by Indian courts for want of a notification,” said Ateev Mathur, a partner at law firm SNG & Partners.

According to people in the know, while corporate loans form a large chunk of UAE’s exposure, even retail loans are quite substantial. “The average ticket size of retail loans is around Rs 2 crore. Many Indians had taken loans and it seems with sole purpose of not returning it,” said one of the people.

Many individuals had given personal guarantees to UAE banks before taking the loans. These personal guarantees could be invoked and criminal cases filed against the individuals, said legal experts.

Many individuals had given personal guarantees to UAE banks before taking the loans. These personal guarantees could be invoked and criminal cases filed against the individuals, said legal experts.

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

@Areesh @Mangus Ortus Novem @Path-Finder @StormBreaker @Maarkhoor @SIPRA
It won’t work.

What happens in UAE, and @Trailer23 knows it as well, don’t you bro ?
Indians, many Pakistanis and Bangladeshis as well as other expats mostly egyptians, iraqis or syrians take corporate loans, huge amounts, nothing less than at least $40k, they initiate businesses, they buy items from wholesale vendors in order to sale them, and what they do is, the pay the vendors in credit, mostly 30-40 days or even lesser r more, those are the agreed terms by both parties while dealing. Then they retail these items or in turn sell quantity to customers either in hard cash or in credit. Sometimes these customers run away without giving money, and the retailers (referring to indian/others who took loan for business), are left with nothing but a burden. So they make Post Dated Cheques and give them to the whole sellers with whom they have contracts of some days. When the cheque date is near, these expats run away, leaving everything behind or either arranging all their belongings back to their destination via others. And then the wholesaler has been played with.

So the end customer did fraud with the retailer who in turn did with the wholesaler due to lack of any options. Money is lost to the end customer who might be african, Indian, Pakistani or Central Asian or ukrainian.

Now, this is just one of the case i told you, in many other cases, and mostly indians are involved in this, Indians take loans, start business, buy items in bulk at lets say 100 AED a piece but on credit, they retail them at loss purposefully, at 70-80AED, then again they get the items, create a trust in market as well as customers since they are getting something much lower(60) than any sane price (100). Customer base is built and they take further loans to cover up the losses while the banks have no idea what’s happening, and they use these loans to pay the wholesalers back and later on get more o credit. In time, a trust is built between the wholesaler and the retailer (who is actually tricking everyone), then one day it happens, they take unusually huge quantity from the wholesaler, either whole in credit or with some small payment made in advance, sell all of them, transfer the whole money outside, run away at night.

This money, they use to build their lives in their own countries or other countries.

So, there is little these banks can do to get money back especially in case A.

The reason people run away due to fear of cheque bounce is that, a law in UAE is that as soon as your cheque bounces, automatically a criminal case is registered under your name and you are on ECL as well as vigilantes are after you. In the mean time, the one who has been frauded with will file a civil case against you. Getting out of criminal case is easy, but facing a civil case means long terms in jail if you are unable to pay back the money.

So i believe, it is a problem of UAE law as well which is too tough for businesses because a single cheque bounce can prove a heavy problem for you in courts.

Investors in UAE with hard cash are mostly Pakistanis, Rich Syrians and Iraqis as well as Lebanese and some egyptians.

Chinese also invest through hard cash, visit dragon mart, Dubai for that is a proof.

Indians are mostly loan-seekers, job type people, who aren’t blessed with enough capital to start a business. Initiating a business in UAE is a very big headache and too costly, you have to run to many departments for 100s of licenses and certificates and even tougher to maintain the business.
@Mangus Ortus Novem @darksider @BATMAN @Areesh

Yeah, I used AED exchange rate.. You are right. It's 7 billion dollars..
Cancel those rafales.....
 
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MUMBAI, Maharashtra: At least 9 banks from the UAE are in the process of initiating legal action against Indian defaulters to recover around Rs 50,000 crore, after New Delhi made the rulings of Emirati courts in civil cases enforceable here.

While most of the cases involve corporate loans taken by Dubai or Abu Dhabi-based subsidiaries of Indian companies, action is also being planned against individuals, two people with direct knowledge of the matter said.

These banks include UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank. A few other lenders such as Doha Bank, National Bank of Oman and National Bank of Bahrain, that have exposure to Indian entities or citizens through their branches in Dubai or Abu Dhabi, also have either already moved courts in the UAE or are in the process of doing so in the coming weeks, the people said.

“Most of the cases are of corporate loans and that is also the priority for the banks as the amounts involved are huge. But some banks also have retail loan exposure to India,” said one of the people. Most of the loans were taken in the past 10 to 15 years.

The Indian government on January 17 issued a notification allowing the decrees of certain UAE courts in civil cases to be enforceable in India. This means a UAE bank, if it has a court order in its favour against a defaulter who has fled to India or no more has operations in the Emirates, can seek to enforce it here like any local lender to recover the money.

1.jpg


“Earlier UAE-based banks had no recourse to enforce judgements directly to recover their corporate or retail loans given to Indians in the UAE, but now they can take action in India. So, now UAE banks can initiate execution proceedings in India after they take a decree from a UAE court and may also explore initiating proceedings under the IBC (India’s Insolvency and Bankruptcy Code),” said Ajay Monga, a partner at law firm SNG & Partners.

According to the people in the know, these banks have approached Indian law firms to assist them in completing the legal process here, such as serving notices on the defaulters or approaching the National Company Law Tribunal (NCLT), which deals with IBC cases.

Emails sent to Emirates NBD, Abu Dhabi Commercial Bank, Doha Bank, Mashreq Bank, National Bank of Oman and National Bank of Bahrain did not elicit any response till press time Friday.

“The banks could first issue notices and see the response of the defaulter,” said a senior lawyer advising one of the banks in a Rs 300 crore corporate loan default. “The banks could also approach the NCLT or even invoke personal guarantees,” he said. Besides, they could look at filing criminal cases in India against the individuals involved.

In its notification, the Ministry of Law and Justice said the UAE would be a reciprocating territory under section 44A of Civil Procedure Code.

The section essentially says that any decree passed by the superior courts of any “reciprocating territory” may be executed in India, as if it has been passed by Indian courts. Similarly, the UAE will allow the rulings of Indian courts in civil cases. The government notification allows the ruling of two UAE-based federal courts and five other courts to be enforceable in India.

“This notification ends confusion as to whether UAE is a reciprocating territory or not. Earlier, the bilateral agreement between the two nations to provide for the recognition of foreign judgements was not acceptable by Indian courts for want of a notification,” said Ateev Mathur, a partner at law firm SNG & Partners.

According to people in the know, while corporate loans form a large chunk of UAE’s exposure, even retail loans are quite substantial. “The average ticket size of retail loans is around Rs 2 crore. Many Indians had taken loans and it seems with sole purpose of not returning it,” said one of the people.

Many individuals had given personal guarantees to UAE banks before taking the loans. These personal guarantees could be invoked and criminal cases filed against the individuals, said legal experts.

Many individuals had given personal guarantees to UAE banks before taking the loans. These personal guarantees could be invoked and criminal cases filed against the individuals, said legal experts.

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

@Areesh @Mangus Ortus Novem @Path-Finder @StormBreaker @Maarkhoor @SIPRA
There is something I want to say but have been barred from saying it so :nana:) I think this is piffle paffle india can easily pay it back and I dont know why UAE is in recovery mode after they gave moohdhi and award too!

See when you don't read my thread on Indian economy you end up in such troubles.

This is very bad very sad. :(
are you still getting the entire bjp media schell jumping onto you for talking about their economy?
 
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There is something I want to say but have been barred from saying it so :nana:) I think this is piffle paffle india can easily pay it back and I dont know why UAE is in recovery mode after they gave moohdhi and award too!


are you still getting the entire bjp media schell jumping onto you for talking about their economy?
Some times they do but now they have also expected the fact their economy is going down.

Old times yaad karadiey.. loll :lol::lol:
Yes old time lol.
 
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There is something I want to say but have been barred from saying it so :nana:) I think this is piffle paffle india can easily pay it back and I dont know why UAE is in recovery mode after they gave moohdhi and award too!


are you still getting the entire bjp media schell jumping onto you for talking about their economy?
The entire business markets have suffered due to these defaulters beyond repair, once all-day heavy traffic markets are now empty and no shops in there, another reason is the heavy burden, the ever increasing living and business operational expenses in UAE, why most have run back to their countries or going to some other countries.

UAE is going through it worst time, @Trailer23 kyun bhai ?
 
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sad, I was hoping to see the brigade again.
How can they come now? Their growth went from 7% to 3.8% in a year. Very bad very sad theard is still here and it is a document of the Indian economic decline. Yes the thread is a Troll heaven but if you read it with purpose of education it clearly explains how India ended up in this crashed economic condition.

In the end here is my latest predictions India second largest export will take a massive hit this year and will push Indian economy into debt and expands India CAD further.
 
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