Does zerodha use clients funds for overnight lending?

@Nakul I want to confirm this - Credit from sold shares on T day (early pay in) is considered unencumbered balance ? that means that credit is reported to exchange as margin available section?
If yes if due to any error as you said above - if it does not show up on margin statement - which can lead to negative balance on margin statement - do we pay margin penalty ?
I am asking because - that early payin credit may not show up on margin statement but will exchange know the actual margin ?
Also how do we check if that early payin credit is added to margin available on T day? @siva @ShubhS9