When there are legal ways for a foreign bank to recover the amount from a defaulter, it cannot resort to threat, coercion or intimidation tactics in Kerala, the High Court has ruled.
Kollam native Susheela was employed in Saudi Arabia as a nurse. She later returned to Kollam and resides there. She had availed a loan from a bank in Saudi Arabia and claimed that the loan was paid back to the bank.
But a few persons claiming as agents of the bank in India approached her and demanded money. They said she had defaulted on payments. The agents used threats against her and warned she would be arrested with the help of police.
Susheela lodged a complaint with the police and filed a petition in the HC. The Court heard the police version also.
A Division Bench of the HC heard both sides and observed that foreign banks cannot employ agents to realise amounts from defaulters through coercion, intimidation or threats. The RBI guidelines that is in force cannot be violated. If it is violated it amounts to posing a challenge to the administration of justice and violation of rights guaranteed to citizens.
The DGP informed the Court that strict instructions are given to all district police chiefs to see that foreign banks do not resort to such practices in Kerala.