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Court fines StanChart Bank on journalist's plea

Written by: Staff

New Delhi, Dec 5: A City Consumer Court has slapped a fine of Rs 500 on the multi-national Standard Chartered Bank for adopting delaying tactics in a case filed by a journalist for allegedly cheating him while disbursing a car loan.

While imposing the fine on the bank, the Consumer Disputes Redressal Forum-VI here asked the respondents to be present in the court on December 22, the next date of hearing to reply to the allegations.

Petitioner Om Prakash Tapas, a journalist with Hindi daily Nav Bharat Times, alleged that the Standard Chartered Bank had allegedly cheated him by promising to extend the loan at a rate of seven per cent if he transferred the loan account from the Citi Bank.

The Citi bank had extended the loan for the purchase of a car at 10 per cent per annum in September 2003.

Mr Tapas alleged that the executives of the Standard Chartered Bank had approached him in September 2004 to transfer the account from Citi Bank with full payment of the loan amount from it.

The petitioner had agreed and gave post-dated cheques to the bank after signing some documents, said Counsel Ajay Kumar appearing for Tapas.

To his surprise, when some loan papers reached to him in January this year, Mr Tapas found that the loan was not at an interest of 7 per cent but at a rate of 19.5 per cent.

The petitioner said the officials of the Standard Chartered Bank had grossly violated the Reserve Bank of India guidelines, mandates of Banking laws, rules and regulations; apart from fair banking practice code.

Mr Tapas has sought the directions of the court to the Bank to charge the interest at a rate of 7 per cent as promised by it, Rs one lakh as compensation, 12 per cent interest on award amount and cost of the litigation.


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