1) User Registration

1.For Entities

2.For Individuals

3.For Individuals

The process of registration for Individuals is online upon receipt of link from NeSL inviting the individual to verify and authenticate the financial information filed in respect of them.

2) Issuance of Annual Certificate to the Registered Users

3)Issuance of Record of Default in Default Reported Loans

1.The norms for obtaining authentication of information of default and issuance of Record of Default by the Information Utility are governed by Regulation 21 of IBBI (IU) Regulations, 2017.

2.On Reporting of the Default by a Creditor (both Financial & Operational) NeSL-IU expeditiously undertakes the process of authentication of information of default, by sending system generated e-mail intimation to the other parties to the Debt inviting them to verify and authenticate the information by affixing digital signature.

3.On completion of the process of authentication, NeSL records the status of authentication of information of default in its database and issues Record of Default (RoD) in Form D.

4.Therefore, the process of categorization of authentication status and readiness of Record of Default from NeSL-IU System is dependent upon the promptness of response of the Debtor in completing the authentication of information of default.

5.Issuance of RoD, by NeSL under different scenarios is narrated here below:

Scenario 1 - The e-mail id of Debtor furnished by Creditor in Form C is a valid e-mail id and Debtor promptly authenticates the information of Default, immediately on receiving the e-mail from NeSL:

The RoD would be available in IU system instantly, within 1 day. This is the minimum time taken for issuance of RoD by NeSL-IU System.

Scenario 2 - The e-mail id of Debtor furnished by Creditor in Form C is a valid e-mail id and Debtor is not responding to the first Authentication invitation e-mail received from NeSL:

(a)In such cases, the Debtor is reminded by e-mails at least 3 times for confirmation of information of default, by allowing three days each time for Debtor to respond.

(b)If the Debtor does not respond, in authenticating the information of default, in spite of all the 4 e-mails, after allowing 3 days time after the 3rd Reminder, the authentication status would be categorized as

“ Authenticated” for Financial Creditors which are Banks appearing in the Second Schedule of RBI Act and “Deemed to be Authenticated” for other Financial Creditors and Operational Creditors.

(c)NeSL tracks the delivery of e-mails sent to the Debtor and records it in its database.

(d)In such Cases, Record of Default would be ready in 16 days from the date of reporting default to NeSL-IU.

Scenario 3 - The e-mail id of Debtor furnished by Creditor in Form C may not be a valid one (or) NeSL-IU is not able to reach the Debtor by e-mail for any reason, in delivering the information of default:

(a)On noticing that e-mail attempt to reach the Debtor has failed, NeSL sends the Authentication Invitation Request Letter to the postal address of the Debtor by India Posts ” Registered Post Acknowledgement due”.

(b)In case the Debtor does not respond, NeSL reminds the Debtor 3 times by way of reminders letter/s sent by India Posts, by allowing 3 days each time for the Debtor to respond.

(c)If the Debtor does not respond, in authenticating the information of default, in spite of all the 4 letters sent as above, after allowing 3 day’s time, after the 3rd Reminder, the authentication status would be categorized as “Authenticated” for Financial Creditors which are Banks appearing in the Second Schedule of RBI Act and “Deemed to be Authenticated” for other Financial Creditors and Operational Creditors.

(d)NeSL tracks the delivery of the RPAD letter sent to the Debtor and records it in its database.

(e) In such Cases, Record of Default would be ready in 18-19 days from the date of reporting default to NeSL-IU.

Scenario 4: In cases, where the attempts of NeSL-IU to reach the Debtor, by e-mails or RPAD letter for authentication of information of default, fail, the authentication status in such cases remains as “ To be presented” category; and RoD would not be available.

6.General:
The process of issuance of RoD from IU System is automated and once the process of authentication categorization is completed, the Registered User of the Creditor using his login credentials can download the RoD from IU system on his own, without the intervention of officials of NeSL.

The procedure for downloading the RoD in a default reported loan is published in our Website: https://nesl.co.in/ > IU Service > Financial Creditors (or Operational Creditors) > Reports > Record of Default

2. On submission of information of default by a Creditor (both Financial & Operational Creditors) NeSL-IU expeditiously undertakes the process of authentication of information of default, by sending system generated e-mail intimation to the other parties to the Debt inviting them to verify and authenticate the information of default by affixing digital signature.

3. For the purpose of delivering the information of default to the debtor, the IU will be sending the authentication invitation e-mails to the e-mail address of the debtor-

a)registered with the IU by the debtor, failing which,

b)recorded with MCA-21 and CERSAI registry as repositories or any other statutory repository as approved by the Board, failing which,

c)Submitted in Form C of the schedule

(A) by a financial creditor, which is a bank included in the

Second schedule of RBI Act, 1934;

(B) by any other Creditor, in respect of a debtor other than

the CD as defined in Sec 3(8) of the Code

4. On completion of the process of authentication, NeSL records the status of authentication of information of default in its database.

5.While submitting the information of default by a Creditor, the Creditor is required to submit the documents showing- proof of debt, latest acknowledgement of debt by the debtor and proof of default, to IU.

6.In cases where the Debtor disputes a part of default amount or entire default amount, during the process of authentication of default, the debtor is required to provide the reasons for such dispute and upload the evidence for the same.

7.The Information Utility, before issuing the record of default in Form D of the Schedule as per IU Regulation 21, shall verify the key details such as e-mail address of the debtor, documents submitted by the Creditor and documents submitted by the Debtor, in applicable cases.

7. Therefore, the process of categorization of authentication status and readiness of Record of Default from NeSL-IU System is dependent upon the following:-

a)the promptness of response of the debtor in completing the authentication of information of default;

b) submission of documents to IU showing- proof of debt, latest acknowledgement of debt by the debtor and proof of default, by the Creditor; and

c)Debtor providing the reasons for dispute and upload the evidence for the same (in applicable cases).

8)Issuance of RoD by NeSL under different scenarios is narrated herebelow:

Scenario 1 –

If (1) the CD has already registered with IU, the e-mail id of Debtor as available in MCA-21 and the e-mail id provided by Creditor in Form C are valid e-mail ids and IU’s e-mails are successfully delivered to the Debtor, (2) Debtor promptly authenticates the information of Default, (3) Creditor has provided all the documents showing the proof of debt, latest acknowledgment of debt and proof of default; and (4) if the Debtor has provided the reasons for dispute and evidence of dispute (in applicable cases),upon verification of these details by IU, the RoD would be available from IU, within 1 day.

Scenario 2 - The Debtor is not responding to the first Authentication invitation e-mail received from NeSL:

(a)In such cases, the Debtor is reminded by e-mails at least 3 times for confirmation of information of default, by allowing seven days each time for Debtor to respond.

(b)If the Debtor does not respond, in authenticating the information of default, in spite of all the 4 e-mails, after allowing sevendays time after the 3rd Reminder, the authentication status would be categorized as

“ Authenticated” for Financial Creditors which are Banks appearing in the Second Schedule of RBI Act and “Deemed to be Authenticated” for other Financial Creditors and Operational Creditors.

(c)In cases where the Debtor disputes a part or full defaulted amount, the RoD will be issued by IU only for the admitted portion of the default.

(d)NeSL tracks the delivery of e-mails sent to the Debtor and records it in its database.

(e)In such Cases, Record of Default would be ready in about 32 days from the date of reporting default to NeSL-IU.

(f ) This is however, subject to submission of documents of proof of debt, latest acknowledgement of debt and proof of default by the Creditor and their verification by IU.

Scenario 3 - NeSL-IU is not able to reach the Debtor by e-mails for any reason, in delivering the information of default:

(a)On noticing that e-mail attempt to reach the Debtor has failed, NeSL sends the Authentication Invitation Request Letter to the postal address of the Debtor by India Posts ” Registered Post Acknowledgement due”.

(b)In case the Debtor does not respond, NeSL reminds the Debtor 3 times by way of reminders letter/s sent by India Posts, by allowing 7 days each time for the Debtor to respond.

(c)If the Debtor does not respond, in authenticating the information of default, in spite of all the 4 letters sent as above, after allowing 7 days time after the 3rd Reminder, the authentication status would be categorized as “Authenticated” for Financial Creditors which are Banks appearing in the Second Schedule of RBI Act and “Deemed to be Authenticated” for other Financial Creditors and Operational Creditors.

(d)NeSL tracks the delivery of the RPAD letter sent to the Debtor and records it in its database.

(e) In such Cases, Record of Default would be ready,after the entire above process is completed. It may takea minimum of about 45days from the date of reporting default to NeSL-IU.

(f) This is however, subject to submission of documents of proof of debt, latest acknowledgement of debt and proof of default by the Creditor and their verification by IU.

Scenario 4: In cases, where the attempts of NeSL-IU to reach the Debtor, by e-mails or RPAD letter for authentication of information of default fail, the authentication status in such cases remains as “ To be presented” category; and RoD would not be available.

6.General:
The process of issuance of RoD by NeSL-IU to the Creditor is doneonly after-

(1) the process of authentication categorization is completed,

(2) submission of documents as proof of debt, latest acknowledgement of debt and proof default are submitted by Creditor and verification by the IU;

(3)submission of reasons for dispute and documents evidencing dispute are submitted by debtor (in applicable cases); and

(4) verification of the above is completed by the IU, as per the amended IU Regulations 21 & 21A.