Bank guarantee and legal undertaking requirement for DEPB scrips mandates BG/LUT when BRC absent, enabling recovery and interest. Where DEPB or freely transferable incentive scrips under Chapter 3 are applied for without submission of Bank Realisation Certificates, the applicant must execute a Bank Guarantee or Legal Undertaking in prescribed Appendix formats; BRC must be produced within 12 months or RA will initiate recovery, and failure to pay within 60 days after that 12 month period attracts interest at 15% per annum from scrip issuance, with unutilised scrip credit deductible from the payable amount. BG/LUT validity is normally 24 months from LEO and may be revolving or scheme specific.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bank guarantee and legal undertaking requirement for DEPB scrips mandates BG/LUT when BRC absent, enabling recovery and interest.
Where DEPB or freely transferable incentive scrips under Chapter 3 are applied for without submission of Bank Realisation Certificates, the applicant must execute a Bank Guarantee or Legal Undertaking in prescribed Appendix formats; BRC must be produced within 12 months or RA will initiate recovery, and failure to pay within 60 days after that 12 month period attracts interest at 15% per annum from scrip issuance, with unutilised scrip credit deductible from the payable amount. BG/LUT validity is normally 24 months from LEO and may be revolving or scheme specific.
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