The President Mr. Dinesh Parekh welcomed the audience and briefed about the activities of CFBP. He stated that we all have been noticing several cases in the Media about excesses committed by Recovery Agents, due to which the borrower was forced to take extreme steps like commiting suicide. In order to educate the consumers about their rights to handle the harassment at the hands of recovery agents, the seminar has been organized by CFBP.

Mr. Subash Chander Gogia , Chairman, Programmes Committee introduced the speakers namely. Mr. S.C. Kothari , Partner, Kanga & Company,Mr . Anand Patwardhan , Advocate,Mr . Arun Wable , Sr. Police Inspector, Cuffe Parade Police Station, Mr . Davidson , General Manager , IDBI,Mr . J.N. Natarajan , Dy.General Manager, Karur Vysya Bank,Mr . Mukesh Kumar, Standard Chartered Bank, Mr.A.A.Taj , General Manager, CRLD, Union Bank, Mr. Ashok Nayyar , Dy . General Manager, SBI, Mr. Shakil Khan, DY. General Manager, ICICI, Mr.Atul Gautam , General Manger, Oriental Bank of Commerce. He then requested Mr. S.C. Kothari, Partner, Kanga & Co. to give his address on the above subject.

Mr. Kothari stated that nobody has right to take the law in his hands. Basic principles of democracy and constitution of India legislation is done with a view to give a right for remedy to every citizen who has any grievance against any establishment or any person. The concept of recovery agents according to Supreme Court is nothing but muscle power with revolver in hand with recovery agents. He stated that the recovery agents do more harm than helping and damage the reputation of the bank. He cited the Supreme Court observation against ICICI Bank which have earned a very bad name. The recovery agent - muscle man needs to be discouraged and they should resort to the procedure recognized by law to take possession of vehicles, in case the borrower may have committed default in payment of instalments. He also citied the observation of Justice Dr. A. R. Lakshmanan.
“ A man's self-respect, stature in society are all immaterial to the agent who is only primed at recovery. This is the modernized version of Shylock's pound of flesh. No explanation is given regarding the interest charge and the bank takes cover under the guise of the holder of the card or loan having signed the agreement whose fine print is never read or explained to the owner.” He also cited the statement of the Chairman of HDFC, Mr. Deepak Parekh who said that no Civil Society would allow the recovery agents to take the law into the hands. Every Bank practice a Code of Conduct which is available on the website of the banks. The banks are entitled to take possession of the property / vehicle but only through the process of law. If the amount is more than 10 lakhs , the cases will be decided by the Debt Recovery Tribunal and if it is less than 10 lakhs, case has to be filed in High Court. The Debt Recovery tribunal is normally faster than the High Court. If the amount of recovery is more than one lakh , notice is required to be given by the banks / financial institution to the borrower calling upon to pay otherwise and take appropriate action within 60 days for possessing the property/vehicle. While concluding, he endorsed the views of the Supreme Court on the excesses committed by the Recovery Agents and appealed to the Police Authorities to see the agreement between bankers and recovery agents and take appropriate action under the law.

 

Presentation by Mr. Anand Patwardhan

 

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