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"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."

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Ruki, Mr K Kamath, chief of ICICI Bank has also been part of delibrate sanction of organised cheating by his institution. It may not be easy to get all NRIs to close accounts with this sucking bank but we can certainly promote amongst NRIs by all possible means about our experiences and emotions against the bank. I for one was cheated by this bank for a significant amount of money. I wrote to a number of senior officials of the bank, including K Kamath. All washed their hands and told me they were white as milk. Helplessly i took away whatever was left in my account after ICICI stole what they could. My fault was I innocently (read like a like a stupid) signed papers after believing their word.I wish no one believes them like i did.Harry. Australia
ICICI not only employs goons to recover loans from defaulters. It also employs cheats within its walls. I was cheated and robed off my money directly from my accounts by these bastards. I even wrote to top echlons of ICICI but to no avail. They are big cheats. I ask Mr Kamat, chief of the bank or one his echlons to reply this email.
In principle, the court is right that outstanding loans should be recovered only through legal means without using muscle or money power. But it is the legal system itself that frustrates such attempts and legal fraternity tops the list of defaulters. You take a car on loan, stop paying EMIs soon after and when the recovery agents take it away, you claim that ten lakh rupees were lying on the backseat and file a suit of recovery against the bank. The result is that even the honest lawyers's creditworthiness suffers and you are denied a loan. In Dubai or Singapore, you are sent straight to prison if your cheque bounces for lack of funds but in India, you slog out for years to get your dues from defaulters.Let the court order that possession of articles bought on credit will automatically revert to the lender unless the outstandings are cleared within one month and the so-called goons will go out of business. You can't ask for a loan and then refuse to pay it back on flimsy grounds.
If SC 's order is enforced then Goons will become unemployed and these Goons will form an All India Goons Association and will go for nationwide strike.Guest lecturers of that Associatiom will be Dawood bhai, Chota Shakeel, Rajan Bhai, etc and sponsored by bank like ICICI,Stan Chart, etc.Their charter of demand will be to use AK-47 if any defaulters donot pay their dues and also power to beat any defaulter in black and blue which could shame the policemen too. Its good thatm these banks are rendering national service by employing goons thus reducing unemlpoyment in India.
SHAME SHAME MR PRAFUL PATEL
Exactly, someone raised a question why take loan if you cannot repay. ICICI/HDFC do it this way, they offer you loan at low interest rates as you are a new customer to them, they promises many things and most of them are a lie. Then you are in a trap. They give you a loan cheque, and once you start paying EMI, suddenly in 3 months, a letter comes, that they have reveised the interest rates and now instead of odd 20k you have to pay 25k everymonth. It goes on till people feel that they cannot pay any more as its out of their ability. Do not expect naive people of this country to read between lines the legal terms which are as complicated as understanding the plumbing system. Cheers
many officers of indian airlines have been denied promotion when they expressed their inability to move out of home town due to genuine and serious problems. WHY THEN DIRECTOR PERSONNEL AND SOME TOP OFFICIALS ARE BEING ALLOWED TO STAY IN DELHI ALTHOUGH THEY WERE POSTED IN MUMBAI BY CHAIRMAN OFFICE ORDER ISUUED BY CHAIRMAN. WHY THEIR CASES ARE NOT TREATED ACCORDING TO SERVICE RULE, OFFICE DISCIPLINE, STANDING ORDER, PROMOTION RULES ETC ETC.--rules are only for junior and middle level officers---TOP OFFICIALS ARE ZAMINDARS WHO CAN DO NO WRONG.
Mr. ABCD, dont throw words like these in a wrong forum and in wrong topics. Go and publish your grievances in appropriate forum, not here.
EVERY NOW AND THEN DIRECTOR PERSONNEL OF INDIAN AIRLINES ISSUES VARIOUS CIRCULARS ABOUT PROMOTION, TRANSFER , ETC . BUT HE IS CLOSING HIS EYES REGARDING TRANSFER OF MANY TOP OFFICIALS OF INDIAN AIRLINES TO MUMBAI AFTER MERGER ---how merger will be effective if persons do not move to head office---ON ONE HAND THEY WANT ALL TOP POSTS BUT THEY DO NOT WANT TO MOVE OUT OF DELHI----probably they are trying to shift head office of merged airlines to delhi[instead of mumbai]
after merger of air india with indian airlines many top officials of indian airlines have been posted to mumbai--the order was issued by chairman 3 months ago---- but still many officials are staying in delhi---if transfer order is isssued to junior or low level officers they have to go within 15 days otherwise they face disciplinary action--WHY TOP OFFICIALS ARE BEING GIVEN SO MUCH TIME TO MOVE?
Whether it is people not paying back loans or tenants grabbing property, all this is a result of courts not doing their job by processing cases on time.The supreme court should first ensure that the lower courts do their job before passing judgement on others.
Do goons have a place in civilised society?
Yes Goons have place in our civilized society and their den is safe in India and they stay in civilized place like, State Assembly, Rajya sabha, Loksabha and it is we, people of India elect them for having a seat in a civilized society.So let us civilize ourselves first.
Goons are ruling India, their address is parliament house, New Delhi, anyone with money can buy one.
What about the UPA government, who even after your judgement serving chicken Hydrabadi to the biggest goon muhammad afzal? Do you have courage to declare this government an illegitimate one? Or, your law is just for those to whom you can command? What about judges and bureaucrats who themselves employ goons as middleman to receive bribe, thus there is no prima facie evidence to prosecute them by Lokapals and Lokayuktas?
When I practiced law, I found CitiBank and ICICI to start using the Goons to recover vehicles and pressurise borrowers illegally, going beyond the legal limits. Luckily, in few matters, we had some good judges who could see that clearly, but in Ahmedabad, the whole thing went unabated. Now, I am in New Zealand, and the rule of law provides protection to the borrowers from intimidation. One can approach the police without fear if that person is "harassed". And yes, it is true that people have to repay what they have borrowed, but those who are favouring GOONS in civilised society shall have a look at famous poem by Pastor Nimoller about the infamous Nazi rule. If you really allow Goons to take charge and law in their hands and ignore that, a day will come when the saying "Jiski Lathi Uski Bhains" (Jungle Law) would prevail. The gentleman who is righteously outraged that "he can get loan" and not repay, will be appalled to stretch the logic, if his own son borrows and commits suicide.
Wow !! This ones has stretched things to the limit. So from tomorrow on I can go into bank, borrow money and vow to never pay back. So what, the banks can pursue a case against me...the case will typically take 35 years to get a clear cut verdict. After several appeals and a final verdict by the Honorable SC (I will be dead by that time) I might or might not have to pay for what I owe. But in 35 years I would have made good use of the money to compound the interest and make me a millionaire. I Thank the SC and urge it to bring many more such laws which will allow me and my like minded friends to swindle. Jai Hind !!
Oh! Ash, you have lost your plum job as "Goon" so thats why you are angry. I have sympathy for you. But dont worry , you guys other lucrative job opportunity in the many Bhai's gang. So go on posting your CV and you may be posted either in India or Dubai or Pakistan.
I forgot to ask this - Why borrow when you can't repay? and then why complain when the recovery agents come knocking on the door? This question is directed to everyone who supports this verdict (I see so many defaulters on this site)
One question, why banks give loans to those people who cann't provide guarantee or can not pay in the first place ? The banks should investigate about the person whether he has immovable property or a guarantore and if the person is capable to pay.
Kundu Kamath who has enjoyed the reputation to place ICICI Bank on world map should answer why he connived at of such happenings in this esteemed institution?I request all NRI to form an association and act decisively against ICICI Bank and close their accounts where an innocent person to lay his life for such mis deeds by the bank.
Ruki, I don't expect that all NRIs will unite against ICICI bank and close their accounts. We can definitely spread the message about ICICI's deceptive and decoit like approach and let them decide their course. My concern is that most people may wait until they suffer direcly at the hands of this deceitful organisation which is reaping money out of the pockets of its customers who innocently trust its first line of staff. Harry. Australia.
yes indeed. Entirely judiciuos and thoroughly perfect a judgement by the apex court . The banks are very quick to sanction loans by projecting a tempting picture . Ads will do the rounds like easy loans , easy instalments , no hassels no gautantors reqiured , apply and get . Then the bank is guided by it's own target and the quota earmarked for the loans and once they achieve the targets they act like dictators and goons . Hiring goons for the recovery of loan is a primitive practise revived by the pvt banks .Supreme court does see the reason and logic about it .there is a legal process for the recovery and by the way who becomes a defaulter . is it Tata ,Birla,or Ambanis . no it is the middle class that suffers most and the defaulters are all service holders . There is salary , PF and other sources the amount can be realised but why goons , why to humiliate the loanees . absurd and the judjement sees reason , a valid one .
There is a saying - "Lathi ke bhains bato se nahi mante". If the banks were to employ strictly verbal pressure, a lot of borrowers will wilfuly default on loan and the bank's bottomline will be affected. This will force the banks to make up for the non-performing asset from honest and solvent customers. My only gripe is, will the bank employ goons to recover money from politicians and big corporates? It they do not, then it is a discriminatory practice. On a side note, think about the implication of government encouraging banks to set up branches in muslim dominated neighbourhoods. If the banks send goons to recover money from a muslim borrower, a riot will ensue. How does the government plan on tackling that? Debt relief to muslims?
Thanks for bringing this point to our notice. Truely speaking I never thought that Congress has played another trick on Hindus. In other words Hindus must pay but Muslims go scot-free.
icici bank employs bastards to recover money by killing people.they must follow legal means to recover money not goons.
I welcome the decision and it is high time there is accountability for every institute in the country irrespective, whether Govt. or Private. But yeah, especially govt.
I never defaulted a loan or payment but I feel many times that government is sold out to corporate houses in India. I am aware of the advantages a sucessful business can bring to the society but lines need to be drawn. Especially with companies like ICICI and Reliance, which have scant respect for social responsibility and human rights. But with the political funding, our politicians are sell outs to these companies.
It is noteworthy that the honourable supreme court has hauled up icici bank for employing the muslemen for the recovery of loans.Such men should be put behind the bars who terrorise theperson concerned in such a way that he gave up his life.Bank has behaved like a village moneylender who sucks the blood of his clients.Such banks should not be spared at any cost.They are very liberal while giving the loanand donot insist on any security but just one default and they will squeeze your neck withoutgranting any mercy.Such practice should be dealtwith firmly and they should not be allowed to operate.The decision is praiseworthy .
SC' judgement is very much welocome. I think the banks should realise that it's a civilised society and usage of muscle power is a criminal activity and I think the banks indulged in such heinous crime should be heavily penalised and the mangers should be sent to jail.The only way forward to tackle the growing non-recovery of loan is to ensure that all the credit checks are done before disbursement of loan and the loans are insured with long standing insurance companies.And in case of default the insurance companies should compenaste the loss. But some over-zealous bankers in an attempt to beat the competition throw all the norms out of window and approve loans without looking into the repaying capacity of the borrower and start using third degree methods for recovery of the loan, which is a shame and should be dealt with in a heavy hand. Any non-recoveryof loan should be treated like a normal business expense and the banks should accrue a certain percenatage of income for the purpos
The supreme court judges are supposed a little deeper, and resolve the issue once forever. This tentative approach is not doing any good for the people except creating more chaos to already grim situation. In a country where courts take many decades to deliver a simple judgement, how are the bank going to recover their due. There are laws in the books but judiciary is so much overloaded with the cases, and police is so drowned into corruption, that there is no one to enforce the laws of the land. This judgement will discourage the banks to issue the loans, and ultimately suferer will be the hapless lower middle class Indians. SC had to the opportunity to address the issue comprehensively, but they missed the boat, and continued their contribution to the painfil CHAOS prevailing every where and in every field.
By simplying having a better risk model and not giving loans to people with bad indicators. Whole civilized world does that, only some Indian banks don't do it and take the bania approach to banking.
I am so delighted with the verdict of Supreme Court of India that I dont find words to praise. In totality, it is a historic act, which in fact was the duty of our boneless Government but there is no doubt that our incapable govt. was so under pressure of these musclemen Banks that it did not think at all about the exploitation of it's countrymen. Why are these unruly banks allowed to loot our own countrymen. It gives lot of pain when we come to know about for a small mistake on the part of consumer they are charging exorbitantly. If there gets any error on the part of these banks then they simply say sorry but when there is a infringement on the part of Creditors they do not leave any effort to penalise heavily. So under such scenario, most of our countrymen used to face lot of agony and generally used to find themselves helpless for finding solutions against these Banks cruelties. I am higly indebted for Supreme Court of India that it felt necessary to pass an order against them.
Supreme Court ruling is a bold step to crush the goonda raj of some bankers. The next step should be a ban on MPs and MLAs who unduly interfere in sanctioning of loans etc. If the Supreme Court focus on the conduct of the "JAN SEVAKS", India will be a better place to do business.
Why nationalized Banks never recover huge loans they owe from many high profile industries/business houses in India? The root cause of this disease lies much below the surface. Many high profile politicians and many powerful people are involved in this game of cheating. Now the disease is spreading fast among low ranking political cadres. Mainly the salaried, the middleclass people are targeted by these private banks that cheat govt and tax payers a lot, on a regular basis.
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