Visweswaraya Co-operative Bank deducts money from guarantor's account two years after seizing bike for which loan was taken
Visweswaraya Co-operative Bank deducts money from guarantor's account two years after seizing bike for which loan was taken
A co-operative bank faces a court case for attaching a customer's salary two years after it had seized the vehicle for which the loan had been taken.
Visweswaraya Co-operative Bank had seized the Yamaha bike owned by Nagarjuna, the son of Rangamma, a sweeper in the BBMP.
After Nagarjuna defaulted on the loan, in 2005, the bank seized the vehicle but only auctioned two years later. Rangamma was mistaken in her belief that it was the last she would hear from the bank on the subject.
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| After Nagarjuna defaulted on the loan, in 2005, the bank seized the vehicle but auctioned it only two years later |
"When they seized the bike we heaved a sigh of relief as we thought we were free of the debt," said Rangamma.
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"They then said that the debt stands at Rs 38,000. It was only Rs 18,000, when they took the bike away."
Rangamma had offered surety when Nagarjuna availed a loan of Rs 40,000, from Mattikere branch of Viswesvaraya Co-operative Bank, to buy the vehicle,in July 2000.
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The repayments were regular till 2004. When they became irregular, the bank seized the vehicle in October 2005.
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The outstanding amount was Rs 18,000, and the bank would have recovered at least Rs 20,000 had the vehicle been auctioned immediately.
However, the bank waited till March 2007 to sell the vehicle off through auction, which only got them Rs 10,222.
When the bank re-calculated the difference, it came up to Rs 38,000 that included warehouse charges to park the vehicle, auctioning charges and the penal interest on the principle.
Approaching the joint registrar of co-operative societies, the bank officials managed to attach Rangamma's salary.
"It is illegal to claim the dues after the hypothecated property is attached," explained C V Giddappa, general secretary of Credit Card Holders Association of India, who has moved the Karnataka Appellate Tribunal on behalf of Rangamma.
When asked about the delay in auctioning the vehicle, G S Venkatesh, branch manager of Viswesvaraya Co-operative Bank, Mattikere, put blame on the transport department.
"The delay is due the procedures of the RTO."
Rubbishing the charges, Bhaskar Rao, transport commissioner, said, "No NOC is needed from the RTO for an auction of hypothecated vehicles. The bank officials are blaming the RTO just to cover their skin."
