Dear Sir,
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Re: Loan A/c no. 410025903, File no. 200817
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This has reference to my last visit to your office at the above address
where I clarified the default in settling the EMI as per the agreement.

To repeat, a loan was approved in my favour for Rs 8,00,000 of which a sum a
Rs 7,50,000 has so far been disbursed. In compliance with the agreement with
you, EMI at monthly intervals were paid from my savings a/c with SBI until
January 2005 after which date, the a/c was transferred to United Bank of
India with an intimation to you to continue the recovery of the loan by
installment through EMI from this a/c. Due to some unknown reason you have
not acted on my advise and hence the default.

During the intervening period I have approached your recovery agent
indicating the discontinuation of recovering the dues through EMI from the
new a/c with UBI. The non-payment of the installments due correspondingly
affected the relief allowed by the Income Tax Act, for the interest part
which I have to pay on the loan taken from your organization.

When the last statement was obtained from you an additional interest of Rs
55,063.20 and levy charges of Rs 14,165.40 together with the principal
amount of Rs 7,08,272.01 were shown to be due with the gross total
outstanding of Rs 9,90,557.21.

Your clarification of payment of such additional interest of Rs 69,228.60
appears to be vague as you confirm on one hand that this amount is only
payable in case I resolve to a further borrowing from another bank to settle
your claim but not otherwise. As far as I am concerned LIC should not be
interested to know form where the fund has come. Apart from foregoing, there
is no breach of agreement as you have failed to take appropriate action by
deducting EMIs on monthly basis from the UBI a/c referred to above.
Obviously a customer cannot be penalized for a lapse in the system. In
addition to the above there are certain discrepancies noticed in the
statement of a/c furnished to me and to my guarantor.

After scrutinizing your statement with all your claims including additional
levies I am of the opinion that your claim is unfair and untenable. Nor your
recovery agent cooperates in the matter and issues threats and abuses to
collect money by any means. Since my agreement is with you, you are at
liberty to clear the EMIs outstanding, as was previously done with SBI and
reduce the balance proportionately. I am not admitting your additional levy
of Rs 69,228.60 as technically I am not in default except that you have not
acted in accordance with my instruction and thus avoid all these
complications and misunderstandings amongst us.

I hope I have been able to clarify the matter in substance, and expect you
to elicit a reply in response to the same.

Yours truly,


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(Nilratan Maity)