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ICICI over-steps in its zeal

If you have ever wondered about the extent to which private banking institutions can, and do, go to recover their dues from defaulters, well read on.

Agents of Shiv Shakti Consultancy, an agency apparently with expertise in this type of work, misbehaved with the Assistant Public Prosecutor Someshwari Prasad and threatened him with dire consequences, in an attempt to force him to pay up on his dues to ICICI Bank, on 25th August, here in Allahabad.

This resulted in a group of people vandalising the local branch of the bank, protests and wide-spread condemnation of the rather aggressive recovery practices of the bank. A series of lawsuits were also filed which resulted in some of the bank employees being arrested and taken into judicial custody.

ICICI bank then swung into action on behalf of its employees and filed counter-suits demanding compensation for damages incurred, both punitive and exemplary and also filed a Habeus Corpus writ to secure the release of its arrested employees.

The Allahabad High Court has taken cognizance of the typical absence of applicable legal precedents in such matters and referred to a separate bench the task of determining -

- Whether the contract between ICICI Bank and Shiv Shakti Consultancy for debt realisation is valid ?

- Whether ICICI Bank is liable for acts, both of civil and criminal nature, committed by the said consultancy ?

- Whether ICICI Bank can circumvent or ignore the procedure laid down under Act 138 of the Negotiable Instruments Act ?

- Whether private banks have the right to circumvent the legal procedures employed by the nationalised banks for recovery of dues and contract with private agencies for the same ?

- Whether banks have a right to arrest the defaulters and hold them in the bank or some other premises ?

- Whether the fees paid to the recovery consultants is recoverable from by the defaulters ?

A lot of the muck currently associated with the dubious practices employed by the private banks in recovery of dues would be cleared when the judgement on this matter is passed.

This is one case I will track closely.

Till then, please do not default on your loan or credit card payments to the private banks. Who knows, what they might come up with to arm twist you into paying up. You can, of course, default on the nationalised banks, they will merely send letters to your supposed permanent addresses for years ;-)

Nice site. Check mine out if you can. electronic cash

Subject Matter :- Public issue of ICICI Bank Limited worth Rs 5750 Crores, closed on 6th December 2005 was based on false information and concealing the true facts in their red herring prospectus in regards to the criminal court case No. 1648/2001 pending in the court of law at Jaipur against them including their Chairman, Managing Director and other senior official u/s 420, 120-B and 500 of Indian Penal Code, after dismissal of their revision petition by the Hon'ble High Court of Rajasthan at Jaipur bench, Jaipur on 18.07.2005.
In order to mislead and cheat the public at large for selling their shares of a face value of just Rs 10/ for the price of Rs 525/- per share, they also abuse the Indian Judiciary System by rising false allegations against the Hon’ble High Court of Rajasthan at Jaipur Bench, Jaipur, in contemptuous manner, in front of more then 1000 millions persons, vide their declaration on oath, in red herring prospectus circulated among the public of India, in order to achieve their illegal motives.
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