ICICI Bank to cough up Rs 1 lakh for not following due legal procedure for seizing car

The courts are getting strict on the banks over the issues related to recovery methods adopted by the banks and their recovery agents.

Earlier on 5th November the Delhi state consumer disputes redressal commission had slapped a fine of Rs 55-lakh on ICICI Bank for trying to recover a vehicle loan by hiring goons.

Again ICICI bank is in news for the same reason. This time the bank has been slapped a fine of Rs 1 lakh compensation to a woman for not following due legal procedure while seizing her car after alleged default in payment. The bank has been accused of sending recovery agents to housewife Renu Bhandwalkar's home and damaging her car. The order was passed by the Pune district consumer disputes redressal forum against the petition filed by Renu Bhandwalkar.

The Pune forum, in its order last month, observed that Bhandwalkar had kept a deposit of Rs 58,000 with the bank and given instructions to transfer it to her savings account if her account did not have sufficient balance to clear the cheques of equated monthly installments against the loan.

The bank, however, did not do so and seized her car. In a petition filed before the forum in September 2006, Bhandwalkar said she took a Rs 4 lakh loan from the bank at 12% interest with a monthly repayment installment of Rs 10,632 in October 2003.