Financial Daily from THE HINDU group of publications
Saturday, May 14, 2005
Financial Daily from THE HINDU group of publications Saturday, May 14, 2005 |
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Money & Banking
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Foreign Banks Consumer forum awards Rs 20 lakh against Standard Chartered Bank Our Bureau
Chennai , May 13 THE State Consumer Disputes Redressal Commission, Chennai, has asked Standard Chartered Bank to pay Rs 20 lakh to a couple for deficiency of service. The bank has been given two months to pay the compensation to the complainants, Capt A. Ranganathan and his wife, Mrs Lakshmi Ranganathan. In its order, the commission comprising Mr Justice A. Raman, President, and Mrs R. Vanaroja and Mr Pon Gunasekaran, members, said it found the claim of Rs 20 lakh as compensation by the complainants "quite reasonable considering the nature of insult and onslaught committed by the opposite party to the self-respect, dignity and honour of the complainants." The commission further said that granting of such huge compensation alone would be an eye opener to such a banking institution. According to the commission, Capt A. Ranganathan maintains different accounts with the bank and Mrs Lakshmi Ranganathan had availed herself of credit card facility from the bank. Capt Ranganathan had given standing instructions for payment of credit card dues of his wife's card from his accounts and also to replenish funds regularly on the use of card by Mrs Ranganathan. According to the commission's order, as on December 31, 1996 there was no amount due and payable by the complainants. However, Mrs Ranganathan received a telegram stating that a cheque for Rs 27,022.35 had been returned for insufficient funds. The complainants had never issued any such cheque nor was there any need to do so. Even before the complainants could verify the demand, the opposite party sent hirelings and thugs in the name of `Bill Collector', who visited the complainants' house and demanded payment and behaved in an "undignified and threatening manner." It observed that to employ thugs and hirelings and send them to the house of the borrowers and threaten them was a despicable act. The commission criticised the bank for adopting such a step and said "it is high time the Reserve Bank of India takes strong note of it and come down severely upon such banks." "We would even suggest that they do not hesitate to cancel the licence of such bank," the commission said.
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