M/S All That Jazz

M/S All That Jazz

1)1)Profile

of

M/S ALL THAT JAZZ

  1. Constitution – Partnership
  2. Name of Partners – JaspalKaur , SimranKaur, NehaKarHura
  3. Activity- Retail outlet of Branded High End Apparels, Jewelry, Sunglasses,

Shoes, Cosmetics, Perfume etc. The Brands include Klein , Gas,

G-Star, Gant etc.

  1. Financing Bank -- Oriental Bank of Commerce, Janpath Branch, Bhubaneswar,Odisha
  2. Facilities - (Rs in Lakh)

Nature Limit Outstanding Overdue

Cash Credit 480 299 ---

Term Loan-I 125 47.04 ---

Term Loan-II 175 68.51 ---

B.G (Fresh) 70 70 ---

6. Date of Last Review - 22/06/2015 by DGM, Regional Office, Bhubaneswar

7. Type of Asset - Standard

8. Recent Position - * Recall Notice Dated 30/04/2016 by Bank’s Lawyer citing that the

Loans have brought heavy financial loss to the Bank.

*There is even no hint about how the loans have caused loss to the

Bank not to speak of heavy loss.

9. Facts as on Date : * The accounts are standard, facilities have been reviewed, interest

Servicing And payment of principal in Term Loan Installments are as

pernorms.

  • The total collaterals against the existing liabilities are more than 200% of the loan outstanding.
  • The principal securities well cover the loan.
  • There was a fire in the shop at Janpath on which ravaged the shop causing massive loss. However, the insurance claim was lodged and as on date, we have received Rs 2 Crore interim claim which is deposited in the c/c account.
  • The Janpath unit was fully refurbished and opened with much fanfare on ------. The sales are quite encouraging with sales amount Rs 55 lakhs approximately since reopening date.

OUR GRIEVANCE

  • Under instructions of present DGM, there is absolute non-cooperation by Bank. Time and again, we were verbally told to close the accounts since otherwise the previous Regional Head would face problems and the present DGM would also come under scanner. The reasons of saying so is not yet made clear to us.
  • Suddenly, the recall notice was slapped on us without any rhyme or reason and no operation is allowed in the account.
  • The indecency of the local Bank Management has gone to the extent of even not attending the reopening ceremony and thereby embarrassing us to no end.
  • The action of the local Bank dispensation will create a situation whereby, without any fault on our part, we shall be pushed towards NPA as it would not be possible to pay the entire amount immediately ( If we had the liquidity to pay the entire loan outstanding at one go when asked to do so within 15/30/45 days, we would not have gone through the rigour of availing the loan in the first place) and then Bank shall move to DRT or act under SARFAESI to ruin us.

OURREQUEST :

To withdraw the recall notice and allow normal operation in the Cash Credit accounts so that we carry out our routine business transactions and are able to meet the liability of the bank and effectively manage business.

WE are commited to pay the Bank dues as per sanction terms.

To

The Managing Director

Oriental Bank of Commerce URGENT

Corporate Office,

Delhi.

Dear Sir,

Re: Credit Facilities to M/S All That Jazz at Your Janpath, Bhubaneswar Branch

We refer to our above account and bring to your kind attention about the harassment meted out by the Local Bank Regional Manager to us and constantly pressing us to close the accounts so that he would not be accountable for the sanction. Even when we pointed out that we had not caused any serious breach of sanction conditions and were paying the term loan installments and were servicing the Cash Credit interest regularly and the stock are maintained properly and the cc account is operated within limits, he refused to budge and recalled the facility arbitrarily in a non-NPA account having sufficient security simply because he expressed that as a Regional Head, He had the authority to recall any facility without assigning any reason and he would ensure that the accounts become NPA and our reputation in the market are tarnished and credit rating ruined.

The situation is so horrible that we are constrained to bring the matter to your kind attention and scrutiny. WE enclose a brief profile of the firm and the current developments and intend to meet you for a few minutes to explain the matter because we feel that such treatment is unheard of in the Bank.

WE request you to kindly allow us time and intervene within the ambit of law so as to withdraw recall notice and restore normalcy in the account.

Yours faithfully

Dated 28/05/2016

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