Monday, 20 May 2013

Complaint Under The Banking Ombudsman Scheme 2006 as per Reserve Bank of India [Part 2]

For the reference to Annexures Click on the following links: 1-1011-171819-2526-293031-343535 Complaint

B.     Grounds of the Complaint :- From the facts as aforementioned following are grounds for taking deterrent  action against the Bank and it’s unleashed officers solely responsible for killing the ‘Organic Dairy Farming Project’ :-
               1. Unusual delay in sanction and disbursement of loan :- From the foregoing it is apparent that the Complainant’s application for the expansion and consequently enhancement of the loan filed in Feb. 2008 was un-necessarily  delayed and the duly deserved sanction was with-held for no known reason, until 06.09.2008. To add to the Complainant’s hardships the disbursement was further delayed by the ‘Bank’ for more than two months, which finally commenced w.e.f. 11th Nov, 2008. This event was the first among the several misconduct of the Bank which squarely falls under the ambit of ‘unfair trade practice’ and clearly a violation of bonafide banking practice.    
               2.Unlawful discontinuance of the disbursement :-  From the facts as aforementioned, it is apparent that disbursement of Rs, 42.27 Lacs in aggregate was made in anticipation of the Sanction Note dated 06.09.2008 during the period from 11th Nov, 2008 to 27th January 2009. Before the Complainant could have pulled out the project from the trauma of delayed disbursement, they were amazed and shocked to learn that the Bank has stopped the subsequent disbursement of the remaining part of the sanctioned loan which was badly needed for undertaking the various operations of the Project which were the life-line, of the Project at that point of time. The denial of the disbursement of the duly sanctioned and partially disbursed loan was unlawful, specially in circumstance wherein no condition or clause of the sanction note was alleged to have been violated by the borrower and loan of the Bank was secured vide mortgaged property by and on behalf of the borrower worth ten time the amount borrowed. The spirit of the sanction was grossly violated by the Bank. Though no reason was imparted by the Bank for its action but we presume that, pretext / plot of the Branch Manager, Raila, deemed to be based upon his letter of malice dated 29.12.2008. The contents of the said letter were self explanatory and erroneous on all counts. Even the contemplation pertaining to his visit to the complainant dairy on 25.12.2008 was spurious, fake and fictitious. He has not paid visit to the complainant dairy on the date stipulated in the said letter i.e. 25.12.2008 which was in fact the Bank’s holiday. It would not be out of place to mention here that the issues raised by whimsical Branch Manager were already intimated/clarified by the Complainant in their letter dated 06.11.2008, that is to say, shortly before his notice-cum-letter of malice dated 29.12.2008. The entire contents of the letter were the part and parcel of the plot of a designed conspiracy by the said unleashed Branch Manager Raila who was inclined upon and strongly committed to fail the Project. This issue was very categorically raised in our complaint dated 31.05.2011, but amazingly and ironically no enquiry whatsoever was conducted by the Chairman, State Bank of India.
The contention sought to be raised by the unleashed Branch Manager, Raila, in the aforementioned letter dated 29.12.2008 were categorically and specifically replied by the bonafide Complainant vide their letter dated 06.01.2009. But ironically the disbursement of the sanctioned and partially disbursed loan was discontinued in violation of the bonafide Banking Practice, even without any further reference to the complainant. This in-fact was the act of irresponsibility of the highest degree which not only tantamount to breach of trust but was altogether criminal and unlawful. This discontinuance of disbursement of the sanctioned and partially disbursed loan has coercively dragged the Complainant into a situation of grave financial crises consequently causing irreparable injury to the project.
The unleashed Branch Manager, Shri K.L. Chouradia, backed-up by his senior companions Shri R.K. Nehra, and Shri V.K. Lakhani, played the role of the germs responsible for causing fatal disease to the Complainant’s ‘Organic Dairy Project’, which was sole of it’s kind and a role model for the country and for which the loan was sanctioned by the Bank. The infection inflicted by these germs was strong enough to finally show the Organic Dairy Project which could have been the role model for the country, its fatal end. They have missed out no chance of making the mockery of the ‘bonafide banking practice’, during the entire course of events as mentioned in the foregoing paragraphs and in our complaint dated 31.05.2011.                                   
       
3. Violation  of the directions of L.H.O New Delhi :- As is evident from the foregoing aggrieved complainant when approached L.H.O New Delhi on 17th March 2009 for seeking relief against the unlawful discontinuance of disbursement of  sanctioned and partially disbursed loan amount which was unduly exposing the project to irreparable losses at its embryonic stage as also exposing the promoter to a situation of grave financial crises. The General Manager L.H.O., S.B.I. deputed Shri S.C. Verma, C.M Agriculture L.H.O New Delhi, to visit the complainant dairy project and report the matter along-with his observation in respect thereof. Shri S.C. Verma drafted recommendations after thorough inspection and vetting of the project.
The S.C. Verma, C.M. Agriculture who as mentioned above was directly deputed by the L.H.O New Delhi on the plea of harassment by the Complainant, have very categorically directed in his recommendations as aforementioned, not to harass the Promoter and to continue with their disbursement along-with the additional Term Loan of Rs, 16 Lacs, so as to enable them to meet out with the losses accrued owing to the delay and unlawful discontinuance of the disbursement. These recommendations were approved without any amendments by General Manager, S.B.I. L.H.O. New Delhi and forwarded to Asstt. General Manager, Jaipur. Putting these very specific directions into a waste paper basket those unleashed officers of the Bank viz. Shri K.L. Chouradia, Shri R.K. Nehra & V.K. Lakhani, become enraged and upraised the degree of harassment. Thereafter, Complainant was loaded and flooded with the spate of unwarranted questioners, quarries and notices, diverting their attention from the main course of the business, to unnecessary tedious paper work. This planned diversion of the promoter attention, further acted in collusion with the financial hardship inflicted upon by the Bank, to render the Project sick. All these quarries, questioners and notices followed by the letter dated 5th June 2009 pertaining to unlawful rephasement of loan were the part and parcel of the designed conspiracy and a plot to fail the promoter to carry on successfully with the project. The above mentioned officers was inclined upon and committed to teach the complaint a worst lesson of his life, simply for reporting their various acts of transgression to the L.H.O. New Delhi.
All the above quarries, questioners and notices causing undue harassment and diversion of the Complainant’s brain from the vital issues and challenges for successfully carry on with the project, are envisaged in of our Complaint dated 31.05.2011.   
    
None of the officer from the Bank was interest in resolving the issues pretended to be in dispute. No endeavors whatsoever were made to conduct meetings with the borrower to resolve the issues amicably to render the project a success. On the contrary whenever borrower tried to contact the Bank, they were repulsive, vindictive, derogatory and arrogant. Their inclination was always been to create problem rather than to resolve it. They were in fact acted as the trouble shooter during course of event. The instant case is one of several classical example of corruption and lawlessness in State Bank of India.     
               
               4.Unwarranted  and  Unlawful Rephasement of Complainant’s loan account :- ‘Credit Facilities Arrangement Letter’, dated 5th June 2009 was factually a conspiracy designed to deprive complainant from approaching any other financial  and banking institution for financial assistance for their pious Project. Thus to present a perverted and misleading  picture of the facts, this letter was planted by the conspiring trio viz. Shri K.L. Chourdia, Shri R.K. Nehra, & V.K. Lakhani, to malign, calumniate, and disparage the image of the Complainant, so as to deprive them from approaching and shifting to any other ‘Banking’ institution.  It is apposite to note here that, both the then existing term loan of Account No. TL-1st 11631532051 & TL-2nd 30564170193 and one account no. CC-2nd 30564558867 pertaining to the then existing C.C. Limit were suo-moto closed and a new term loan of account no. TL-3rd 30790086642 & C.C. limit in account no.CC-3rd 30790238803 and a new account called overdue amount of Rs. 13.70 Lacs bearing account no.TL-4th 30790105601 were opened, simultaneously carry forwarding the corresponding closing balance of the corresponding old accounts in the new accounts. In anticipation of the closure of the then existing loan accounts, ‘charge of satisfaction’, was field with the ‘Registrar of Companies’, evidencing thereby that, there was no amount overdue in complainant’s closed loan accounts. In these circumstances, the rephasement of the complainant account was undoubtedly a mischief to deprive them from approaching and shifting to any other financial institution to seek financial assistance. This made them severally handicapped to save there project from being killed in the embryonic stage for the shortage of funds.    
It is further pertinent to note here that, the unlawful “rephasement” was concealed by the Bank under the title of “Credit Facilities Arrangement Letter”, with the ulterior motive as aforementioned. There was no demand or even the intimation from the Bank for so called overdue amount to the complainant. The repayment of loan amount, if any, overdue has never been intimated to the Complainant nor did the Complainant was provided with the appropriate opportunity by the Bank to fill in the gap between the amount payable and the liability actually discharged by them. Complainant was not upraised with the details of his own loan account by the ‘Bank’. No intimation whatsoever was rendered by the ‘Bank’ in respect thereof. However, shortfall in repayment or overdue amount, if any, (which we have no knowledge, till date) would have been on account following reasons viz :-
(i)    Delay in sanction causing premature lapse of substantial part of moratorium period even prior to the sanction and disbursement of loan. In other-words we apprehend that overdue amount may be computed without taking into account the moratorium period which actually starts with the disbursement of loan., (ii) Unlawful with-holding  of the disbursement., (iii) Failure to recompute the EMI, as has been explained in detail in our complaint dated 31.05.2011.
It is amazing to note here that in the said credit facility arrangement letter dated 5th June 2009 stipulating rephasement of loan, their was no stipulation pertaining to the security on which the fresh loan was sanctioned to the complainant proving thereby that said letter has been drafted in haste with the sole motive to harass the complainant so as to block them from approaching and shifting to any other Bank. In their enthusiasm and vindictive vim they missed out amazingly to secure the loan of the Bank. In the facts and circumstances of the instant case there is no denying the fact that they have one sole in motive mind i.e. to ruin the promoter and the project. They were least bothered to secure the loan of the Bank which was their prime duty. Their concealed motive and inclination was solely to ruin the promoter with no benefit to the Bank.
It is further amazing to note that, in the letter dated 05.06.20009 there was no mention as to for which purpose this new loan was sanctioned to the promoters. Thus, they once again failed to discharge there duty even towards the Bank.
In view of the foregoing it is evident that conspiring trio viz. Shri K.L. Chouradia, Shri R.K. Nehra & V.K. Lakhani, have no concern whatsoever pertaining to the interests of the Bank either. They were working simply for their own vested interests and for the satisfaction of their vindictive vim and ego. On the contrary the Complainant who by default of these officers got the opportunity of un-secure loan for undefined purpose never ever miss-used the same. Our bonafide are thus self speaking and apparent on the face of record.
It is pertinent to note here that amount of Rs, 13.70 Lacs stipulated in the said credit facility arrangement letter as the amount pending in the closed accounts referred there under, was also erroneous. An explanation in respect thereof may be sought for from the Bank.
                  5. Unwarranted and mischievous litigation and strong defamatory comments: - In this reference your attention is invited to the Para-39 of the ‘Brief Statement of Facts’, above. The Branch Manager has filed three appeals in the Court of The Hon’ble A.D.M. Bhilwara making complainant the first party, against the noting of the Tehsildar, that does not tantamount to an appealable order. Instead of complying with Tehsildar’s very prudent directives, vindictive and whimsical Branch Manager mischievously and maliciously filed appeals against the same making Complainant a party to it and that too with the derogative comments on the bonafide of the complainant. The appeal was withdrawn in the first effective hearing after the publication of advertisements in the daily news paper, that is to say, after achieving his objectives to defame and harass the complainant. It is equally important to note that immediately after the publication in the news paper he complied with those very directions of Tehsildar, for the appeals were filed. It is more amazing to note that complainant was no where required in the fulfillment of this entire process, but he made dragged into litigation followed by publication as aforementioned. Thus facts and events apparent on the face of record corroborate beyond doubt that those appeals were factually a design and a plot to harass and defame the bonafide complainant with no benefit to the Bank.
                  6. Thorough and exhaustively technical vetting report of Smt. Sabiha Akhatar: - was mechanically and purposely turned down without pointing and its short coming and without explaining as to why the revetting and that too by a non technical and a contracted recovery officer was deemed warranted. Complainant was never imparted with any reasoning in respect thereof. Please Refer Para-(J) of our Complaint dated 31.05.2011   
7. Branch Transfer application of the complainant not taken into consideration:-
Complainant has requested to transfer bank accounts from Raila branch to other branch by various letters dated 26.05.2009 as ANNEX. 19 A, 06.08.2009 as ANNEX.19B, 24.11.2011 as ANNEX. 19, 08.12.2011 as ANNEX. 21.           
8. Despite being under obligation, copy of the ‘Loan Sanction Note’ and allied loan documents were not provided to the Complainant.
9. Illegal  ask for premature deposits in Term Loan Account :- The  Bank has illegally and mechanically demanded the deposit of amount pertaining to the sale of Cows (which were sold for replacement by new one’s) in Term Loan account. Please refer sample letter’s dated 04.03.2009, & 10.12.2009 copy enclosed herewith as Annexure 33 & 34 respectively.  This was one of the main grounds for discontinuance of the disbursement of loan. Whereas it was very categorically showed and explained to the Bank that the amount realized from the sale of the Cows is meant for the purchase of the new which was the prime necessity of the ProjectThe ask of the Bank was illegal categorist findings may be imparted on this issue.        
10. Various Charges were unduly deducted and even Complainant’s eligibility under priority sector lending was not taken into account. : - It is apposite to note that project financed by the Bank was an ‘Organic Dairy Farming Project’ which is undoubtedly an activity covered under ‘agriculture sector’, attracting there by benefits and exemption available to the priority sector lending. Complainant was deprived of the same.
11. Our Complaints  were not duly registered by the Bank :- 
Our complaint dated 31.05.2011 and series of reminders in respect thereof were not registered, considered and even complaint no. was not assigned to them and intimated to the Complainant. The complaint filed prior to 31.05.2011 also meet the same end as is evident from the set of events narrated in our complaint dated 31.05.2011 and subsequently in its reminders referred in the foregoing paragraphs.
Amazingly there were no changes in the modus operandi of the Bank in the post complaint period i.e., period subsequent to 31.05.2011. Despite very categorical request not to involve the offending officers against whom the complaint was logged and the L.H.O New Delhi.. The meeting was conducted by the General Manager L.H.O New Delhi and that too in the presence of Shri V.K. Lakhani who was one of the prime accused. Further-more Shri K.L. Chouradia continued to visit our Unit on several occasions even subsequent to 31.05.2011 and continued to abuse, harass and threaten the complainant. This made us severally handicap to continue with the project and ironically in Jan. 2012 we finally decided to close down the Project which was the end of our pious dreams to provide the children’s of our holy mother land with pure and unadulterated milk at least.              
                  12. Our intimation dated 28.01.2012 & 06.02.2011 (rendered at the time of the closure of the Project) to take possession and charge of the Cows  (live stock) which were hypothecated as security with the Bank  :-  was not considered and the sensitivity of the live stock was mechanically over looked leaving us to a situation wherein we were Compelled to make sale of the live stock and incurs further losses in distress. That despite repeated request and reminders to take charge and possession of the live stock Cows, no one from the Bank appeared to take charge and responsibility of the live stock (Cows), the complainant with no other option left with them, were compelled to make the sale in distress and incurs undue losses. That  the basic guiding force which compelled the complainant  to sell the Cows in distress at a very low price and even on credit as also for consideration other than cash, was the financial hardship inflicted upon them by the Bank. Complaint was not in the position to feed the cows and the death in starvation of a single cow would have attracted country vide agitation and political intervention. Thus the entire set of events reveals beyond doubt the fact that, the Bank was not sincere even on this very sensitive issue.
13. C.C. Limit unreasonably withheld: - The C.C. Limit of 20 Lacs sanctioned on 06.09.2008 was freeze illegally, Please Refer complaint dated 31.05.2011. A detailed Sheet enclosed herewith as Annexure- 34 
14. Land of M/s Kanhika Agro Biioteck Pvt. Ltd. worth Rs. 8,54,77,500/- as per Bank’s Valuer was mortgaged :-  in anticipation of the pre decided  expansion of the project consequently requiring enhancement  of loan. As is apparent on the face of record the said enhancement of loan was never allowed to us. Thus the mortgage of this land was as aforementioned premature. In these circumstances, the charge on the said land was created presuming that  the enhancement is bound to be allowed but unfortunately the same was not allowed because of the unfortunate happenings as mentioned in detail in our complaint dated 31.05.2011.
15Pain and Agony of the Complainant:-
I am deeply pained at drawing your kind attention to the gross irregularities that have been committed in collusion by the corrupt officials of the esteemed organization. They acted in consonance with vindictive vim. It was a rude shock to know that the AGM did nothing to check & improve the functioning of his subordinates because he wants to become DGM and the DGM does nothing as he has to become GM and so on and so forth. It was personally told to me that we cannot fight with the entire system for just one project of yours. These subordinates are the ones who play a pivotal role in deciding our future growth in the organization. It hurts us badly at such a sorry state of affairs of the biggest bank of our great country and I have been a part of it. These vindictive / whimsical officials have been successful in their aim of getting this pious and path breaking project of mine off track.
I am at cross roads and totally disturbed both mentally and physically. I do not know what to do at the age of 47. I have been the Vice President and Director of The Jaipur Stock Exchange Ltd. for more than 3 years and have also worked in the capacity of Director of a bank. I have been a share broker for a pretty long time but have given my all for this dairy project of mine for the last 7 years. I am not in a condition to go back to my old profession now. I strongly feel that the past 7 years have been a complete waste for practically no fault of mine. I feel my future is blank and completely dark due to some highly dishonest & corrupt official’s whims and fancies.
I not only strongly feel but believe deep down in my heart that after green revolution this would have been a trend setter project in the field of dairy as we wanted to develop an integrated model of Agriculture & Dairy farming with complete backward and forward integration. This would have resulted in a lot of entrepreneurs entering into this field. All this have made to die at an incipient natal stage because of lack of orientation focus and red tapism of these highly dishonest officials. The Bank never followed their own fair lending practices code, Policy on customer grievances redressal, and totally involved in Unfair Trade Practices and never made a sincere effort to solve my grievances.
I really do not know after facing such a trauma how am I going to convince my own-self to continue in the field of business or put my own son in this field. These words have emanated from deep down of a person who has been at the receiving end of a complete autocratic and corrupt system.                                                                                                                                 
From the forgoing submissions, it is apparent that sin has been committed repeatedly by the corrupt officials of the Bank.  They deliberately caused our pious project to fail by unlawfully withholding disbursement of loan at several occasions. Because of which our pioneer project which would have emerged as a role-model for the Organic Dairy Farming Industry in India, was made to die at the very onset. At this juncture we would like to share the experiences that we had during our meetings on the issues of dispute with the higher officials of SBI up-to to the level of L.H.O. New Delhi. We learnt through our experience that officials in SBI are dishonest, that is to say, they are neither performing their duties, and extending their services as is expected in the modern banking system nor they are acting in the interest of the Bank too. Moreover the system established in SBI since long also compels others to support those who are dishonest as aforementioned. The root of this lies in the deep rooted Union system in SBI, which is a system in operation producing groupism and favoritism therein. There is no denying the fact that administration and management in SBI is dominated by different Unions supported by various sections and groups working therein. These Union dictate their terms on the administration and management in SBI at the higher levels, blindly supporting their members / voters etc. This leads to the denial of justice to the borrowers of the Bank. The administration & management in SBI works under the pressure of these Union especially in cases involving compliant against their members, invariably are causing the miscarriage of justice. Even the higher forum in SBI is not at liberty to deliver justice to their customers, as is evident from the fact that our very categorical and very reasoned request not to involve the corrupt officials, specifically against whom the complaint was lodged, in the enquiry proceeding, was mocked at. Our Complaint at multiple levels were buried under the dictate of these Unions. But unfortunately there is no forum within the network of SBI to guard and take care of the interest of the borrowers / customers. In these circumstances this Hon’ble Forum is the last and the only ray of hope for seeking justice and relief for the bonafide complainant who was unfortunately trapped into the dishonest calls and claims of SBI pertaining to their Customers Friendly Services. There calls were as dishonest as the officials Shri K.L. Chouradia, Shri R.K. Nehra, Shri V.K. Lakhani and D.B. Shiwach who acted only for their own vested interest against the norms of the Bank. Under the pretext to guard the interest of the Bank they violated the bonafide Banking Practice code and instead spoiled banks business and its image too. 
                
8.   Whether any reply (Within a period of one month after the bank concerned received the representation) has been received from the bank? Yes/No
     
No
9.   Nature of Relief sought from the Banking Ombudsman
      In the above premise your honour will appreciate that we have gilt edged case in our favour and factually and we deserves the following reliefs to mitigate the loss of prestige and wealth owing to the misconduct of the Bank:-     
(I)The words and expression of malice i.e., ‘Rephasement of loan’, referred to in letter dated 05.06.2009 may be withdrawn on record with apology by Bank in writing.
      (II)The entire details of the accounts viz. the precise details of all the term loan (whether old or new) and C.C. limit, sanctioned to the complainant including the date of sanctions, amounts and dates of disbursement etc, item-wise and head-wise.
       (III)The Bank may be asked to apologize in writing for filing undue appeals in Bhilwara Court and publishing advertisement in 21.11.2010 edition of Rajasthan Patrika.
      (IV)To release the charge of the 259 Bigha 16 Biswa of Land owned by M/s Kanhika Agro Biioteck Pvt. Ltd. and mortgaged on behalf of the Complaint, so as enable the bonafide Complainant to deal with the said land in the manner which suits them the most. This action will prove to be a lifeline for the basic minimum livelihood of the promoter and his family who are maliciously dragged into a situation of financial hardship by the Bank.
        
               (V)Thorough investigation of the Complaint dated 31.05.2011 and follow-up    letters.            
               
(VI)Deterrent penal action against Shri K.L. Chouradia, Shri R.K. Nehra & Shri V.K. Lakhani, Shri D. B. Shiwach and the other officers who either colluded, protected or shielded them.  
     
            (VII)Set off of all the interest may be provided for against the pending dues of the Bank as against the complainant. Since the bonafide complainant was inflicted with undue losses, which lead his to lose his own share of investment in the Project, solely for the reasons of misdeeds of the Bank who violated at each step the ‘Guidelines on Fair Practice Code for Lenders’.      
      We sincerely hope that your good-self will accede to our humble request and oblige. We however reserve our right to add to and amend to this submission, if warranted in the process of assisting this Hon’ble Chair to deliver justice. Personal hearing may also be granted so as to enable us to substantiate our case and explain the matter to this Hon’ble Chair by way of reference to various records and allied documents etc.  
        
10.    Nature and extent of monetary loss, if any, claimed by complainant by way of compensation (please refer to clauses 12(5) & 12(6) of the scheme)     
       
         Deterrent Action may be taken against Shir K.L. Chouradia, Shri R.K. Nehara, Shir V.K. Lakhani & D.B. Shiwach and others who supported or shielded them.
         Monetary compensation may be provided as assessed and deemed fit by this Hon’ble Chair we however reserve our right to the Higher Judicial Forums for compensation as available to us within the ambit of law.

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