CHENNAI: A private bank has been fined Rs 20 lakh by the Chief Metropolitan Magistrate Court in Egmore for allegedly charging an excess amount of Rs 14.3 lakh a man who pre-closed a loan of Rs 1.5 crore.
According to police, R Selvaraj, an entrepreneur, had pledged his house with Kotak Mahindra Bank and availed the loan in 2006. He pre-closed the loan through a demand draft for Rs 1.7 crore the next year.
However, a few months later, Selvaraj’s auditor found that he had repaid an excess of Rs 14.3 lakh. When they approached the bank, the management promised to help, but did not return the money.
Selvaraj also tried to avail the help of RBI ombudsman, but was told that the specified time limit within which he should have raised a complaint had elapsed.
In 2018, Selvaraj lodged a complaint with the North Beach police, which was later transferred to the bank fraud wing of the Central Crime Branch (CCB).
The police filed a charge sheet against the bank and at least six of its employees. The court fined the bank and discharged the six employees from the case, police said. One half of the fine amount would be paid to Selvaraj and the other to the court, police added.