HC imposes ₹25K cost on bank manager for not giving vehicle loan

CHENNAI: Justice CV Karthikeyan of the Madras High Court ordered a penalty of Rs 25000 on a bank manager associated with a public sector bank in Mayiladuthurai for not granting the vehicular loan to a customer who furnished the recommendation of Tamil Nadu Adi Dravidar Housing Development Corporation (TAHDCO).

The judge passed the order on hearing a petition filed by one Prabhakaran from Nagapattinam who was trying for a loan of Rs.6.64 lakhs from the Bank of Baroda's Mayiladuthurai branch for purchasing a tourist vehicle.

According to the petitioner, he approached the bank in 2016 for the loan and it was delayed by the managers who were posted at the public sector bank's Mayiladuthurai branch.

"After verifying my documents, the district manager of TAHDCO granted his consent in 2016 for the grant of loan. However, the bank manager did not act on the recommendation of the TAHDCO, " the petitioner submitted through his counsel.

Recording the submissions, the judge expressed grief against the bank management. The judge observed that when TAHDCO gave a recommendation to grant the loan, the bank should have given it to the petitioner after completing the verification of the documents.

As the hindrance made by the bank manager has affected the petitioner, the judge imposed Rs.25000 cost on the officer and directed him to deposit the amount in favour of the Tamil Nadu State Legal Services Authority.