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Saraswat Bank says case filed by defaulting borrower to block loan recovery

Earlier in the day, Moneycontrol reported that the Pune Police have registered a cheating case against eight persons including Saraswat Bank Chairman Gautam Thakur and Managing Director Smita Sandhane.

December 27, 2021 / 08:00 PM IST
Representative image

Representative image

Saraswat Bank on December 27 said legal action against the bank by a borrower is aimed at creating hurdles for loan recovery and the bank will pursue legal remedies to take possession of the property and recover loan amount.

"We wish to inform you that the FIR has been filed by a Director of Orange Medicare & Research Centre Pvt. Ltd. (OMRC) with the intention to create hurdles and to avoid loan recovery action of taking possession of the mortgaged property etc. as per latest order issued by Tahsildar in December 2021," the bank said in a press release.

"We deny all the allegations made in the complaint and we will also ensure that Bank will take all the steps to defend its action, its officials and take this case to its logical end," the bank said.

The bank further said it has been a trend for some defaulting borrowers to create all sorts of hurdles including criminal charges against banks which are trying to recover their legitimate unpaid dues.

"Saraswat Bank will not succumb to such pressure tactics and will pursue all legal remedies to take possession of the property of the defaulting company," the  bank said.

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OMRC is the defaulter borrower of the Bank and at present we have to recover around Rs 16 crore plus updated interest from him, the  bank said, adding Securitization Officer of the Bank has initiated the recovery process by issuing notice of possession.

"We wish to further state that the borrower tried to enter into OTS with the Bank however failed to repay the agreed amount and hence OTS failed. Therefore apprehending that the Bank will take possession of the property, borrower has filed this false case against its Chairman, Managing Director and officials of the Bank," the bank said.

OTS stands for one-time settlement.

Earlier in the day, Moneycontrol reported that the Pune Police have registered a cheating case against eight persons including Saraswat Bank Chairman Gautam Thakur and Managing Director Smita Sandhane, based on an order from a judicial magistrate court.

"We have registered a cheating case against Saraswat Bank Chairman and seven other people based on a Court order. The investigation is currently on," Senior Police Inspector Mahendra Jagtap of Kothrud Police station told Moneycontrol on December 27.

Started in 1918, Saraswat Bank claims to be the largest Urban Co-operative Bank in India and has operations in six states – Maharashtra, Goa, Gujarat, Delhi, Madhya Pradesh and Karnataka.

According to the bank’s website, it has a total business of Rs 67,000 crore plus, 283 branches and over 311 ATMs.
Dinesh Unnikrishnan is Deputy Editor at Moneycontrol. Dinesh heads the Banking and Finance Bureau at Moneycontrol. He also writes a weekly column, Banking Central, every Monday.
first published: Dec 27, 2021 08:00 pm
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