Thread by @muglikar_

I will explain you all the waive off and recovery thingy via a simple eg. Let's take an example. There are two friends. Ramesh and Suresh. Suresh is in need of money. So he goes to Ramesh and says look dude I need one lac rupees. I have my bike and scooter as security.

Ramesh says ok fine I can lend u that amount at 10% interest per annum and against the security of ur bike and scooter. They have an agreement. Ramesh gives one lac rupees to suresh. Now suresh puts the money in his biz and all is well.

Suddenly due to some xyz issue, suresh starts defaulting on the EMI he is supposed to pay to Ramesh. Ramesh does a lot of follow up. Sends emails. Letters. Ppl to factory house but suresh is unable to pay. Ramesh starts getting frustrated.

Ramesh checks his books of accounts and finds that suresh owes him 60,000 rupees as on date. This amount includes the unpaid interest too. Due to some rule by RBI he now has to provision for loss of this amount. This is coz he can sense that suresh is not going to pay up

He then does a book entry and "writes off the amount" in his books. Suppose this happens on 01st April 2015. Total dues on that date is now 60k. He goes to court. Starts a recovery proceeding. How will he recover? Naturally by selling the scooter and bike and even the co setup

The court proceedings usually take time. But in year 2016 he gets a buyer for the scooter and he is able to sell it off. The scooter gets sold off for say 10k. Ramesh is happy. Out of his total dues of 60k he has recovered 10k. But now see the thing. As one more year has passed

More interest is getting built up on 60k. Isn't it? This is called as unapproved interest. Let's assume this amount is say 5k. So total dues in 2016 was 60k original plus 5k interest minus 10k recovered so outstanding 55k. Story moves on.

Meanwhile there are some retards at NDTV who in 2016 whine like idiots and say hey look Ramesh wrote off 60k but really recovered only 10k. Haha. And they demand resignation of a hardworking pm of their country. Ramesh is worried but ignores these ppl. Now comes 2018.

Finally what happens is court proceedings move on. Everybody is deep prob as money is stuck. Then a dude comes to Ramesh via court and says ok I know this suresh dude has messed up. But u know I will buy out the whole co. I I can offer u ppl only 40k.

As time has passed Ramesh says no my principal dues and unapplied interest is now 90k. Then negotiations happen and Ramesh thinks ok its all messed so atleast I should be in a position to recover my principal, booked interest and maybe I shud forego my unapplied interest.

He takes a court monitored, committee monitored business call. And negotiations happen and new dude says finally I can pay up 60k. Everyone agrees and case gets "resolved"

After this Ramesh gives a no dues to suresh. He is free. New dude gets the co.

Ramesh gets back principal plus applied interest. He loses on unapplied interest. Which was nothing but opportunity cost. He is now saying ok at least I recovered my main pie. I messed up earlier n I should be careful before lending to ppl like suresh.

Then he looks at NDTV. Those jokers had mocked him in 2016. He just smiles at their ignorance, curses himself for his folly of lending to an idiot and moves on.

He is happy coz he saved his lending institution. He has learnt his lesson. But then

He goes back and checks boss why did I lend to suresh in first place. He realizes that suresh and Ramesh children and friends and it was on insistence of Ramesh's son that he had lent money to suresh. So loss kiski wajaah se hua? Due to conflict of interest n no brains.

He yells at his son and decides boss next time onwards I will lend on the basis of viability. Not on the basis of some pressure or phone calls and relations. Story ends.

Replace Ramesh with Bank. Suresh with a crony moron. Ndtv remains same. Son are the politicians who forced

Loss is what haircut Ramesh had to take.

Recovery is what the new dude could pay.

Activity is called as Insolvency resolution.

And ndtv morons remain impractical morons.

Son's behavior is the reason he nerds punishment. And 2019 voting shall be the event. Have a nice day.