I had applied for a Term Loan at Dena Bank Ramnagar Branch, Surat for purpose of purchase of Textile Power Looms Machineries. I had submitted a quotation of amount for Rs.1,28,10,000/- provided by the Supplier.
The Bank sanctioned me a Term Loan for Rs.95,00,000/-with six months moratorium period along with a Cash Credit for Rs.15,00,000/- on 10/12/2015. As per stipulations of sanction, I had mortgaged my Residential property, where I was residing with my family, as collateral security. The bank has opened a current account in the name of my firm. I was also forced to keep an amount of Rs.5,00,000/- as fixed deposit with the bank. I had deposited a sum of Rs.33,10,000/- in my current account as margin money as per bank’s direction. The bank had directly transferred the same amount to supplier’s ICICI bank account by RTGS.
After completing the mortgage registration process dated 07/01/2016, when I visited the bank, I was surprised to know that the bank officials have already disbursed an amount of Rs.70,00,000/- out of the total term loan limit of Rs.95,00,000/-. The amount was directly transferred by way of RTGS to the supplier’s ICICI bank account.
I had paid my first installment towards interest of the term loan on 30/01/2016.
After receiving a total amount of Rs.1,03,10,000/- by the Supplier, he did not deliver the machineries and done a fraud of Rs. 1,03,10,000/-. When I reported this fraud to the then branch Manager, he assured me of taking legal action against the supplier. Despite of my repeated requests, the bank failed to take any steps to enquire into this fraudulent matter. As, I did not get the delivery of any machinery, I could not even start my proposed business.
Moreover, the bank officials started to pressurize me for full repayment of the said loan, even when I was not having physical possession of any such machineries to run my proposed business. Due to the ever mounting pressure from the bank, I asked them to recover the interest of the said loan from my fixed deposit with them. The bank in turn recovered an amount of Rs.2,05,039/- from my fixed deposit.
I also apprised the matter to the Zonal Officer, but I did not get any positive response from his end. In fact, the bank officers were not ready to listen to my grievance, but were only concerned about recovery of full loan amount. Then I lodged a complaint with full documetory proofs against the supplier with the local police station on 28/07/2016. But the police has not filed FRI and replied that if the Bank will lodge complaint then we can take action.
Then the bank sent me a legal notice on 30/07/2016 for recovery of the loan amount. As per notice, I had failed to repay my loan installment on time. It also demanded a sum of Rs.4,500/- towards lawyer fees for sending legal notice. It was also mentioned in the legal notice, that bank would take legal action against the culprit under IPC section 406,417,420,465,467,468,471 and 114. However, the bank did not initiate any legal action.
In the meantime, the bank recovered an amount of Rs.3,11,196/- on 09/08/2016 from my fixed deposit and Rs.4,500/- was debited from my Term Loan account towards the legal notice fees.
On 17/09/2016,the bank sent me notice under section 13(2). It was mentioned in this notice, that my loan account has turned NPA on 16/09/2016. However, the bank has already recovered Rs.3,11,196/- on 09/08/2016 and at that time no overdue was in my loan account. My question is how can a loan account turn in to NPA just within 37 days? Now, I had a doubt that there must be some nexus between the bank officials and the supplier and I was entangled between them.
The bank took physical possession of my Residential property on 12/05/2017 under the SARFAESI act. They also published an Auction notice in the News Paper on 30/05/2017. The auction date has been declared on 30/06/2017.
In this whole fraud episode, the bank’s money was also at stake. But, instead of taking appropriate action against either the erring officials or the Fraudster Supplier, it is trying to cover up the matter by seizing my property by misusing the provisions of SARFAESI act to recover their loss. In this incident, fraud was done by a third party and both became victims, the Bank and the Borrower. So why only borrower is liable for total amount of loss?
I have filed writ petition in Gujarat High Court on 22/06/2017 against the police officer for inaction in my complaint. My case is also running in DRT, Ahmedabad. I have already lost my money and my business. If I will fail to get STAY from DRT, how can I save my property? I am no in situation to payment of full loan amount.
Sir, please guide me, what are the neccesory steps I need to take in this situation?
