Subidha Furniture treats customer security deposits with strict fiduciary care, maintaining segregated accounting and auditable deduction procedures.
1. Legal Nature of Security Deposits
**Refundable Liability**: Security deposits collected for Rent and Lease contracts represent refundable customer funds held in bailment.
**Segregation from Operating Revenue**: Deposit transactions are maintained in a dedicated deposit ledger (`RentLeaseDepositTransaction`). They are never commingled with monthly sales revenue.
**Mandatory Threshold**: Security deposits are set between 20.00% and 30.00% of the asset's retail value based on risk tier and tenure.
2. Permissible Deductions
The security deposit is refundable in full, subject only to the following permissible deductions:
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**Unpaid Periodic Rent Demands**: Outstanding rent or lease charges accrued up to the physical asset handover date.
**Condition Deductions**: Verified repair, re-polishing, or replacement costs established under the Return Damage Assessment Policy.
**Missing Hardware / Accessories**: Actual replacement cost of unreturned cushions, keys, remotes, or specialized fittings.
**Secondary Transit Fees**: If the customer failed to provide access during a scheduled return pickup.
3. Arrears Protection & 45-Day Repossession Rule
**Finite Protection Buffer**: The security deposit provides a finite financial buffer covering approximately 4 to 6 months of rent.
**Enforcement Cutoff**: If monthly rent arrears exceed forty-five (45) days, store management is required to initiate repossession pickup. Under no circumstances may staff permit arrears to consume 100% of the deposit, ensuring residual funds cover refurbishment and return transit.
4. Refund Processing Timeline
**Inspection Sign-Off**: The return inspection must be completed within forty-eight (48) hours of asset arrival at the warehouse.
**Electronic Remittance**: Following mutual sign-off on the Return Inspection Report, the net refundable deposit balance is remitted directly to the customer's bank account via NEFT/IMPS within seven (7) banking days.
**Deposit Certificate**: An official Deposit Refund Settlement Advice detailing gross deposit, itemized deductions, and net paid amount is available for download in the customer portal.
Legal usage note
Published policy text is for customer clarity, operational governance, and statutory compliance.
Contracts, tax invoices, receipts, and audited delivery records remain the canonical transaction source.
For contract-specific clarifications, contact the Subidha Furniture showroom administration.