On Thursday Kerala High Court in a hearing came down on the 'strong arm' tactics being adopted by some new generation banks, for the recovery of loan amounts from customers and stated that they should respect the law of the land.
A division bench headed by Justice K Balakrishnan Nair said police should take effective measures to 'nip in the bud' attempted by such banks to recover loan amounts. He said while giving a judgment in favor of a petition filed by one Sabu of Thiruvananthapuram complaining harassment by goondas allegedly engaged by the private HDFC bank.
The petitioner in his complaint stated that he had purchased a car by taking loan from the bank and due to default in payment; the bank authorities threatened the petitioner and his wife by sending 'goondas'. In spite of complaints to the police, no action was taken, he said.
The bench said that the bank has no right to employ strong arm methods to recover the vehicle. The bank has to respect the law of the land and should take alternative steps in accordance to law.
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