Tiruppur Exporters Association (TEA) requests onetime exemption from MODT charges

The TEA has written to the State Government requesting onetime exemption from MEMORANDUM OF DEPOSIT OF THE TITLE DEED (MODT) charges to avail loans from banks.

Tirupur: The TEA has written to the State Governmentrequesting one time exemption fromMEMORANDUM OF DEPOSIT OF THE TITLE DEED (MODT) charges to avail loans from banks.

In a press release issued by the TEA today, Raja. M. Shanmugham, President of the TEA said, "after the Finance Ministry’s announcement of stimulus measures for the MSMEs, including 20% of entire outstanding credit as a collateral-free loan, when the exporting members approached the banks to avail the loans, the banks have insisted on the submission of the MEMORANDUM OF DEPOSIT OF THE TITLE DEED (MODT) after registering at the Sub-Registrar's Office."

He further said, "while registering, the exporting units have to pay the Stamp-Duty Charges against the loan amount as fixed by the Tamil Nadu State Government. As the MSMEs are currently struggling to meet their financial ends due to COVID-19 impact, and mainly to ease of the financial stress on them at this juncture, we request the industry friendly Tamil Nadu Chief Minister to advice to provide one time exemption from the payment of the MODT Charges and help the MSMEs at this hour of liquidity crisis and help them to strive hard and bring back their business to normalcy."

Further, he said, "after taking into account all positive developments in Coimbatore, Tirupur and Erode districts we also appeal to the Chief Minister to permit for operating transportation of buses with more frequency for people movement and also for workers located outside in the suburban areas and villages for turning up for jobs to Tirupur."

He was hopeful that both the requests would be considered positively by Tamil Nadu Government.

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