GOKULDAS KAMATH (EX BANKER) 20 July 2024

Recovery of overdue loan

Respected Sir,

I am an ex banker worked in a nationalised bank for 31 years but dismissed from the services of the bank in May 2009 after keeping me under suspension for 2 years due to a conspiracy by Officers Union in connivance with Bank's higher authorities for exposing thier unhealthy and illegal business practices to bring high value term deposits from Government institutions.At the time of dismissal my age was 54 now I am aged 70 with multiple health issues and partially handicapped due to an accident.While in service I had availed housing loan of Rs.5.00 lakhs in the year 2000, Overdraft facility of Rs.3.50 lakhs in 2002 and Two wheeler loan of Rs.0.34 lakhs in 2006 at concessional rate of interest as available to Bank employees.Bank took action under SARFEASI act in 2013 , took symbolic position of my Flat and attempted to auction the Flat. As per auction notice in leading news papers, reserve price was fixed at Rs.11.50 lakhs but there was only one bid which was below the reserve price. hence auction process was cancelled.Same year my Provident Fund was settled for Rs.3.00 lakhs in June 2013 while Gratuity and other benefits were forfieted for the reason 'MORAL TURPITUDE' Bank had credited Rs.3.00 lakhs to my housing loan account in June 2013 and remaining amount of Rs.2.50 lakhs was paid by me.But Bank has reversed Rs.3.00 lakhs from my Housing loan account on 31.12.2013 to my overdraft account thereby my housing loan account remained outstanding.I have asked the bank several times for One time settlement facility which was rejected by the bank stating that ex employees of the bank are not eligible for OTS facility.As per housing loan sanction stipulations, I was required to repay the principal loan in 80 installments and interest accrued on housing loan in 27 months.In other words there is no interest chargeable on interest accrued interest. Entire principal amount was cleared in 2013 and only interest accrued on housing loan was outstanding.From 2013 onwards, bank started charging interest on interest accrued account at compounded rate and at the end of July 2021 outstanding housing loan was showing Rs.5.43 lakhs .When I complained to Grievances Cell of the bank, interest on housing loan was recalculated by the bank as a result it was found by the bank that interest of Rs.3.07 lakhs is excess charged by the bank, based on this I have repaid remaining balance but now bank has come out with a new theory that concessional rate of interest available to Bank employees cannot be extended to me as I am a dismissed employee and interest rate will be as applicable to general public and now asking me to repay Rs.11.84 lakhs based on revised interest as applicable to general public with monthly rests

1. Please note that the dismissal order dated 23.05.2009 does not say anything about the discontinuance of concessional rate of interest made available to me when I was in service

2. After my dismissal in 2009, the bank did not inform me in writing that my staff housing loan is converted into a general housing loan as applicable to the general public and that rate of interest would be as applicable to the general public

3. Bank did not recall the advances from me from 2009 to 2013 but all of a sudden took action under SARFEASI act

4. I am not aware of any staff circular issued by the bank stating that dismissed employees are not eligible for any concession in loan facilities once they are dismissed. If the circular was issued after 23.05.2009 it is not applicable to me as it is not brought to my notice at any time.

5. Even if the staff housing loan is converted into general housing loan as applicable to general public, terms and conditions on conversion will be changed as under

a) Such Housing loan needs to be rescheduled regarding tenure of fresh repayment schedule, rate of interest to be charged by taking an option from me as to whether it is fixed rate of interest or flexible rate of interest with sanction stipulations conveyed to me and not as per whims and fancies of the bank

b) Such housing loan can be classified as NPA only after default in repayment of rescheduled loan

Bank did not take any of the above action after my dismissal

While I am eager to close my loan liabilities, Regional Office has referred my above points to bank's Head Office in Mumbai for clarification by HR department but HO has not yet clarified the points raised by me which is referred to HO by Regional Office

In this connection, I humbly request the forum members to guide me suitably

Reply Follow

3 Replies

T. Kalaiselvan, Advocate (Advocate) 20 July 2024

You can file a writ petition against the bank if there is an inordinate delay to dispose your subject matter and seek relief as per your eligibility

Sudhir Kumar, Advocate (Advocate) 22 July 2024

All that could be understood is that :-

1. You are dismissed long back.

2. You did not challenge he same.

3. You got PF Rs 3 lakh and no other dues.

4. You did not challenge that.

5. You had staff loan in house and vehicle pending.

6. You did not refund the loan.

7. Dismissal order does not speak about conversion of staff loan into public loan.

(I) DISMISSAL ORDER DOES NOT NEED TO SPEAK ABOUT ALL DISABILITY INFLICTED UPON EMPLOYEE AS PER RULES ON DISMISSAL, JUST IN THE SAME WAY THAT APPOINTMENT ORDER ALSO DOES NOT SPEAK ABOUT RIGHTS AND LIABILITIES AFTER JOINING BUT YOU KNEW THEM AND JOINED, WITHOUT ANY INQUIRY.

(II) YOU HAVE PROBABLY NOT REFEREED TO THE TERMS SETTLED IN LOAN AGREEMENT

(III) THE VIGILANCE DEPARTMENT WHILE PROCESSING A DISCIPLINARY CASE NEED OT (RATHER SHOULD NOT) BE KNOWING ABOUT LOAN LIABILITY AND PENALTY ORDER CANNOT BE BASED OF FACTORS WHICH ARE EXTRANEOUS TO CHARGESHEET AND INQUIRY.

8. Bank did not inform you that the loan is converted as public loan.

BUT YOU KNEW THERE IS A LOAN

9. There is also no staff circular that such loan can be converted to pubic loan.

YOU HAVE NOT REFERRED TO TERMS OF LOAN AGREEMENT

10. Bank did not call for repayment and went to SARFESI act,

ARE THEY REALLY REQUIRED TO DO SO. YOU HAVE NOT REFERRED TO TERMS OF LOAN AGREEMENT

GOKULDAS KAMATH (EX BANKER) 22 July 2024

Thank you very much sir,

A writ petition challenging the dismissal order was filed before High Court of Karnataka in 2014 which was admitted by Hon'ble High Court in 2017.

Criminal complaint filed by the bank against me in 2008 is under trial now

A private complaint filed by me against the bank and its officials in 2019 is admitted by the JMFC couer which is under investigation now

When a customer avails two wheeler loan or four wheeler loan from the bank, customer is required to sign an loan agreement in which one of the conditions is that in case of default, bank can take the possession of such vehicle.If this customer defaults in repayment of loan. can the bank seize the vehcle as per the terms of agreement? No.Bank has to serve a prior notice to repay the loan first and notice will be clear that if loan is not repaid, vehicle will be seized. Same rule applies even for housing loan or any other loan

If you take a loan at the rate of say 10% per annum and when you go to the bank to repay the loan and bank says rate of interest is now 12% per annum so you need to pay the interest @12% now , will you pay the interest @12% per annum just because there is a column in the loan agreement that interest rate is subject to change at any time without any further notice and agreement is signed by you

According to my little knowlefge, any changes in the terms and conditions of loan from a bank needs to be informed to the borrower

I don't know whether all the above norms are changed now.

Thank you once again