ICICI Bank has been fined Rs 50 lakh by the Delhi Consumer Commission for hiring goons to recover loans in a landmark ruling. Read more here.
The commission used strong language to condemn the flouting of rules by ICICI Bank by continuing to hire goons to recover a few thousand rupees. I hope this ruling will go a long way to reign these banks in who even after a Supreme Court ruling continue to employ these recovery agents who often use brutal and unlawful methods to recover the money. Until now the banks were washing their hands off by claiming that they were not responsible for the methods employed by the recovery agents. But the Consumer Commission categorically stated that it is the bank’s responsibility to make sure that the recovery agents do not resort to unlawful methods to recover loans.
This ruling should now prevent banks resorting to exploiting legal loopholes to get away with human rights abuses that often resulted in serious injury and tragically even drove some people at the receiving end of such forceful loan recovery tactics to suicide.