Widow of army personnel made repayment of 1/3 of settled amount but Punjab National Bank served second auction notice insted of renewal

Grievance Status for registration number : DEABD/E/2023/0058707

Grievance Concerns To

Name Of Complainant

Smt Rajesh Sharma

Date of Receipt

19/08/2023

Received By Ministry/Department

Financial Services (Banking Division)

Grievance Description

Financial Services (Banking Division) >> One Time Settlement of Loan

Bank : Reserve Bank of India

Branch / Name of Bank and Branch : PNB Civil lines, Bulandshahr, Branch Manager - Akhilesh

Type of Loan : Cash credit

Acount Number : 0069008700013264

-----------------------

An application under Article 51 A of the constitution of India by the proprietor of Om Gas Agency Smt. Rajesh Sharma wife of Brij Nandan Sharma.

Prayer-Honourable Sir, the applicant has made the repayment of one third of the total amount decided by Punjab National Bank but Bank is issuing the notices of auction repeatedly instead of renewal of loan account as assured by them quite obvious from communication dated 13/12/2022 of the bank addressed to the applicant. Vide attached page 4 to the grievance.

It is noticeable that chief manager, authorised officer, Punjab National Bank , secured credit issued the first auction notice on 10/02/2021 which was settled through OTS by making repayment by the borrower one third of settled amount and keeping the loan much below the limit. Vide page 2 of the attached PDF document to the grievance.

Chief manager, authorised officer, Punjab National Bank , secured credit issued the second auction notice on 19/07/2023 which is against the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.

Undoubtedly The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 provides enormous unchallenging power to the bank but it is the obligatory duty of the staff of the bank not to misuse it.

How can loan provided by the bank may be considered non-performing assets if the 1/3 amount of the loan as decided why the accountable public functionaries of the bank has been paid by the applicant?

Here it is quite obvious that the extra ordinary power vested to the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is being misused by the bank staff arbitrarily which reflects the corruption in the working of the bank.

Here it is quite obvious that bank staff not pursuing the guidelines passed by the Reserve Bank of India regarding the declarat

Grievance Document

Current Status

Under process   

Date of Action

19/08/2023

Officer Concerns To

Officer Name

Ms Betsy Rajagopal (General Manager)

Organisation name

Reserve Bank of India

Contact Address

Consumer Education and Protection Dept., Amar Building, 1st Floor, Sir P.M. Road, Fort, Mumbai

Email Address

cepdco@rbi.org.in

Contact Number

02222604106

Reminder(s) / Clarification(s)

Reminder Date

Remarks

19/08/2023

Here it is quite obvious that bank staff not pursuing the guidelines passed by the Reserve Bank of India regarding the declaration of non-performing assets vide RBI circular (RBI/2014-15/73 DBR.No.CID.BC.57/20.16.003/2014-15 dated July 1, 2015)

The matter concerns the working of the Role of RM Bulandshahr as the mockery of the law has been made by the branch manager of the Punjab National Bank who is violating the consumer rights of the widow of the army personnel belonging to the vulnerable section.

This is a humble request of the applicant to order an inquiry which may be carried out in transparent and accountable way so that arbitrariness and tyranny of the concerned bank personnel may be exposed.

The applicant had submitted the renewal application for the cash credit account before the branch manager quite obvious from the third page of the attached PDF document.

Branch manager may provide the details of the proceedings in regard to the renewal of the Cash credit account of the proprietor of the om gas agency.

It is quite obvious that branch manager of the Punjab National Bank is violating the consumer rights of the widow of the army personnel which is against the setup norms of the government.

It is quite obvious from the status of cash credit account CC account - 0069008700013264 total bank loan on the applicant is Rs.4385939.07 while the loan limit of the applicant is 50,00,000 rupees. Vide first page of attached PDF document.

Branch Details-BULANDSHAHAR CIVIL. lines

Customer Details-OM GAS AGENCY PROP RAJESH SHARMA KHURJA ROAD SARAI LOCHGAN PANNI NAGAR BULANDSHAHR

From:4718000100042 139 DEVENDRA KUMAR 58543427 09-08-2023 4385939.07 Dr.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is a powerful instrument in the hands of the banks and financial institutions (FIs) as secured creditors. If the borrower becomes a ‘wilful defaulter’ as defined by the RBI Master Circular

19/08/2023

on wilful defaulters vide RBI circular (RBI/2014-15/73 DBR.No.CID.BC.57/20.16.003/2014-15 dated July 1, 2015) SARFAESI Act proceeding can be issued even without notice to the borrower. Who is a wilful defaulter?

Deliberate non-payment of the dues despite adequate cash flow and good net worth, Siphoning off of funds to the detriment of the defaulting unit

Assets financed either not been purchased or been sold and proceeds have been misutilised Misrepresentation / falsification of records Disposal / removal of securities without bank's knowledge

Fraudulent transactions by the borrower. Banks/ FIs throwing overboard these norms, classify all the MSME NPAs as wilful defaulters to apply the SARFAESI lever. As per the Act, valuation of the asset has to be done and notify that valuation to the borrower before issuing public notice for auction of property. Bank has to give 30 days’ notice to the borrower regarding its right to proceed against the mortgaged property if he does not pay up the entire principal and interest.

To see the attached document to the grievance, click on the link