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सहकारिता मंत्री ने संत कबीर दास को किया नमन, कहा: कबीर वाणी आज भी प्रासंगिकअम्बाला:हरियाणा के स्वास्थ्य मंत्री अनिल विज ने जींद के सीएमओ जय भगवान को किया सस्पेंडराजस्थान में कोरोना के 68 नए केस दर्ज, राज्य में कुल संख्या 9,930 हुईः स्वास्थ्य विभागभारत सरकार ने योग दिवस से पहले 'माई लाइफ माई योगा' ब्लॉग कंपीटीशन लॉन्च कियागुजरात विधानसभा स्पीकर- कांग्रेस के एक और विधायक बृजेश का इस्तीफा मंजूरमौसम विभागः दिल्ली-एनसीआर में 9 जून तक काले बादल छाए रहने, हल्की बारिश की चेतावनीदिल्ली हाईकोर्ट ने AAP विधायक प्रकाश जारवाल की जमानत याचिका खारिज कीप्रकाश जावडेकरः भारत दुनिया की 8% जैव विविधता का संरक्षण करने में सक्षम, यह बड़ी उपलब्धि

Some Siddhartha’s loans may not burden family

August 03, 2019 05:19 AM


Some Siddhartha’s loans may not burden family
Shilpa Phadnis & P Vasanth Kumar TNN


A significant part of the personal borrowings of deceased Coffee Day founder V G Siddhartha is unlikely to devolve on the family as these were done with private financiers on the basis of the trust they had on Siddhartha, people with knowledge of the matter said.

The transactions between Siddhartha and these financiers are said to have been collateral-free and unsecured. Experts believe the family would be liable only for any debt that they have co-guaranteed.

Siddhartha is said to have had personal loans of over Rs 3,500 crore, much of it taken through private holding companies of his. Some part of these loans were from organised financial entities such as Standard Chartered PE, and came with stringent conditions. But the remaining were from friends and associates, with no collateral offered.

Shailesh Haribhakti, founder and chief mentor of auditing firm Baker Tilly DHC, said in India the law is very clear that unless there is a joint obligation, it ceases with the person who took on the obligation and who is no more. This is the reason why organised financial players often take collateral security from various other people, he said.

If assets have been pledged against loans, then those assets can be used to recover the value of the pending loan. Advocate A V Amarnathan said if the borrower had a guarantor or joint debtor for the loans obtained by him, that individual becomes responsible for the full loan balance if the borrower passes away.

He added that under the Hindu Succession Act, 2005, a son is not liable to pay back his father’s debt out of anything that he had made out of his own income or savings. However, a son is liable to pay out of what he has inherited from his father’s property, provided those had been pledged. The same rules are applicable to a spouse also, said advocate G R Mohan.


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