The bank’s practice! One justice for the rich! Another justice for the poor and middle class! No political party spoke about this.
The bank takes strict action using agents to collect the remaining amount from middle-class people who have paid 75% of their loan. That’s how banks treat corporate debtors! OTS, Compromise Settlement on thousands of crores of claims – why this dual approach? MAKKAL ADHIKARAM special article from the Social Welfare Magazine.
When ordinary people who borrow money from banks cannot repay the loan within the specified period, recovery actions are continuously carried out through Recovery Agents. The banks try to collect the outstanding amount from them through various means such as phone calls, notices, and legal actions by those agents.
There is no doubt that it is the legal right of the bank. But the question that arises here is different.
If a regular customer has already paid 75 percent of their loan, why shouldn’t they have a transparent Compromise Settlement option to settle the remaining amount reasonably?
How does OTS come about for large debtors?
The Indian banking system has procedures like One Time Settlement (OTS) and Compromise Settlement.
By receiving a specific amount from the debtor, the bank can waive the remaining claim subject to its terms and conditions.
This is not an illegal practice. However, the question is whether the same policy is available to ordinary customers, transparently and fairly?
Furthermore, bank officials do not send agents to corporate creditors. They send these collection agents to ordinary middle-class people who have taken loans. There, they will not be respected. He will not let my security inside. Furthermore,
As per RBI regulations, actions such as intimidation, humiliation, harassing family members, and making persistently abusive calls through Recovery Agents are not permitted. If such actions occur, a complaint can be filed against the concerned agent at the police station.
Furthermore, Makkal adhikaram publishes this news as a special article with the truth about this matter to the general public. A nursing college that was functioning in a rural area through the Siva Educational Trust in Pollachi, near Coimbatore.
This is an institution founded by Natarajan Mudaliar, a former soldier who served in World War II, for the tribal people and poor rural students in the area. It was run by his son, Yogananda Shiva. Furthermore,
Yogananda Shiva, the owner of this educational institution, borrowed ₹4.06 crore from the Kaliyapuram branch of Corporation Bank between 2012 and 2013 for the development of the institution. From the date of borrowing, he has paid ₹3.39 crore of the bank loan within approximately 48 months, i.e., until 2016.
Then, during the period of Corona, due to a decrease in student admissions, he was unable to continue paying the bank loan.
In this situation, Corporation Bank is merged with Union Bank of India. Subsequently, bank official V. Murthy has been continuously attempting to seize this trust property. Despite much resistance and struggle, the efforts of the college’s MD, Yogananda Siva, were unsuccessful.
Furthermore, the bank official separately divided the assets of this trust and brought them up for auction. With the intention of seizing the 5.17 acres of land belonging to the Shiva Educational Trust, the bank official Moorthy arranged through Lemon Associate Agent and they are taking this land in auction for a low price.
Furthermore, trust property cannot be easily auctioned by anyone without a court order. The bank official, unaware of this law, brought this land for auction and obtained a possession order on 03.05.2023 by concealing the truth through the criminal court.
Then he immediately sells the land at a low price. Regarding this, the Siva Foundation should appeal to the criminal court, they did not get justice. Furthermore,
The answer he gets from there is? They inform him that he can appeal to the Revenue Tribunal or the High Court and get a solution for this. The hardships, struggles, and insults they endured for this are unspeakable.
But, how selfishly do the bank officials act? That is the accusation of the poor, simple, and middle-class people. These are truths that senior government officials, police, and the judiciary must pay special attention to.
Furthermore, the demand from the Makkal adhikaram magazine and the Social Welfare Journalists Federation is that the Coimbatore District Debt Tribunal should provide fair and proper justice for the fraudulent work done by bank officials in this case for the Siva Educational Trust!