Adv. M Profile picture
Oct 20, 2017 12 tweets 2 min read Twitter logo Read on Twitter
1/ Just finished meeting with a Dhule based SME entrepreneur who's "finished" due to #DeMo aka notebandi. Also insensitive bankers.
2/ The gentleman is a third generation onion trader. Uses to be a Really big trader. He allowed his son to set up SME for onion dehydration
3/ Being in onion business, he knew his onions. So a state of the art , modern manufacturing plant was set up, part funded by bank.
4/ As usual, the unit was under financed. Short WC funding is a constant feature of bank loans to SMEs. The liquidity of onion trading
5/ facilitated the working of the industry. Things were going well. Then on Nov 8 , the Tughlak did DeMo. The liquidity dried up.
6/ No money to continue production. Bank unwilling to help promptly. Despite having credentials, couldn't get funds. Reason ????
7/ Again : #DeMo. The banker busy in handling cash and the large queues. No time for development banking. By March 17, the Banker got crazy
8/ The account was turning NPA. He wanted money , anyhow. Poor guy had to sell part of the 500 Tonnes dehydrated onion @27 to 35/- per kg
9/ Only misfortune : his coat of production of it was Rs. 85/- per kg. NPA classification was averted in March. But he had no money for WC
10/ Ultimately, the account turned NPA in September. 13(2) Notice issued. An honest entrepreneur brought to disaster. For no fault.
11/ Now begins his struggle to save industry, his house, his honor, his dignity. Depressing story. Only because one idiot who was made to
12/12 believe in a hare brained idea by a few idiots. The 10 Cr investment lies unutilized. 70 workers remain jobless. The nation, hopeless😖

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Adv. M

Adv. M Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!


Jun 9, 2018

Let's talk about NPAs :

On 8th April 2004, Soli J.Sorabjee, the then Ld Attorney General, arguing for Union of India, convinced a Constitution Bench of SC to uphold the Sarfaesi Act, 2002 by citing a pressing need to curb NPAs, which had risen to Rs. 1 lac crore
It was submitted before the SC that the enactment of RDDB Act, 1993 & establishment of DRTs has been unable to stop the rise in NPAs. Mr. Salve chipped in with a talk on International practices.

The SC agreed. A harsh, draconian law was upheld.
It was upheld with a stated objective of "reducing" the NPAs. A lot of existing protections under laws & principles of natural justice were allowed to be trampled by banks and financial institutions to address the pressing need of 'reducing the 1 lac crores of NPAs'.
Read 20 tweets
Sep 28, 2017
#GSTGaming tales I continue to hear :
Visited a CA (doesn't want to be named) in Kalbadevi y'day:
1. CAs r advising clients to deal in cash
2. They say it's impossible for many businesses to continue with GST.
3. High value cash deals have started featuring Gold biscuits as
as part of the deal. Payments are being made partly through Gold. A few biscuits & a few lacs in 2000 denominations.
Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!