Wilful defaulter label
Dr C Suresh
(Querist) 09 February 2012
This query is : Resolved
RBI guidelines states that banks will write to borrowers and take their input before decalring them as wilful defaulter. If a Bank doesnot follow the RBI guidelines and places someone on wilful default list, can a defamation case be filed against the bank?
Devajyoti Barman
(Expert) 09 February 2012
No defamation case does not lie for this.
Read section 499 ipc to understand defamation better.
ajay sethi
(Expert) 09 February 2012
you can make representations to Griveance Redressal Committee if you are not given 15 days notice and the resaons for declaration of you as wilful defaulter .
ajay sethi
(Expert) 09 February 2012
Grievances Redressal Mechanism
Banks/FIs should take the following measures in identifying and reporting instances of wilful default:
(i) With a view to imparting more objectivity in identifying cases of wilful default, decisions to classify the borrower as wilful defaulter should be entrusted to a Committee of higher functionaries headed by the Executive Director and consisting of two GMs/DGMs as decided by the Board of the concerned bank/FI.
(ii) The decision taken on classification of wilful defaulters should be well documented and supported by requisite evidence. The decision should clearly spell out the reasons for which the borrower has been declared as wilful defaulter vis-Ã -vis RBI guidelines.
(iii) The borrower should thereafter be suitably advised about the proposal to classify him as wilful defaulter along with the reasons therefor. The concerned borrower should be provided reasonable time (say 15 days) for making representation against such decision, if he so desires, to a Grievance Redressal Committee headed by the Chairman and Managing Director and consisting of two other senior officials.
(iv) Further, the above Grievance Redressal Committee should also give a hearing to the borrower if he represents that he has been wrongly classified as wilful defaulter.
(v) A final declaration as ‘wilful defaulter’ should be made after a view is taken by the Committee on the representation and the borrower should be suitably advised.
Advocate M.Bhadra
(Expert) 09 February 2012
In this case defamation does not lie,you can only lodge a complaint to the Banking Ombudsman.
V R SHROFF
(Expert) 10 February 2012
NO Defamation.
Defamation case cannot be filed against the bank.
Deepak Nair
(Expert) 10 February 2012
I agree to the common opinion of the experts above.
