I am an NRI and I invested some amount in a private limited for a food processing industry.
Unfortunately the factory didn't do well due to several factors including COVID.
I invested heavily in this pvt ltd company besides giving my ancestorall home as collateral based
on the request from one of the directors. Since I am not in India, I don't remember signing any document
regarding being a guarantor for the loan. I gave POA for the collateral to one of the directors, who recently
passed away.
Later I was told that non directors need not give a collateral for the bank loan.
The bank declared the account NPA and has threatened to take away all the collateral given.
What's the process of taking over the collateral? In case the bank's loan doesn't cover the loan, can the
bank come after other personal assets?
CAclubindia
