I am a voluntary retired Can bank employee. As I had very bad experiences about Co op bank I had to go in detail the MCS act and the modus operandi of co op banks in western Maharashtra and I have come to the following conclusions.
1. Banker is taking very undue advantage of the summery power of Asst. Registrar in collusion with him in respect of sec 101 disputes between borrower and Banker. The borrower being in arrears very rarely opposes the dispute. Once the bank get sec 101 recovery certificate against the borrower which is the conclusive proof unchallengeable without depositing 50 % amount the bank very vigorously starts recovery process and starts harassing the borrower.
The notices, physical visits, attachments of the movable and immovable properties ( irrespective of whether they are mortgaged or not ) , auctioning of the properties illegally ( without following the led down norms and procedures ) etc.
2. While auctioning the properties the banks play blunders… first of all they obtain a valuation of the property at much lower price. It is being confirmed by DDR immediately. A proclamation is given in newspaper which is having very less circulation. The property is sold ( and the possession is obtained with the help of police force ) to a person near and dear to the directors at very low cost and subsequently is purchased by the member director of the bank.
( Now this would be difficult since the amendment in law does not permit the same but the injustice done in earlier cases remains in dispute.)
If the auction is opposed for the first time by the borrower bank creates such a record that they had tried to auction the property for three times but they couldn’t find the purchaser hence they apply for transferring the legal rights in their name with DDR. And since he being the officer in rapo with the bank transfers the rights to bank. Bank now is now at liberty to sale the property at their whims and acts accordingly with ease.
3. This way co op banker has become a estate agent or estate mafia in our area. 4. Many a times bank dares to attach properties under sec 107 owned in joint names and even the Joint ancestral properties of Hindu undivided families which are not mortgaged for the loan transaction making the entire family to suffer .
4. Banks even dares to attach multiple properties on the strength of a single 101 recovery certificate .
5. Bank many a times attaches and sales properties which are situated in urban areas other than which is mortgaged for the loan especially when the mortgaged property for loan is agricultural land.
I am helping the needy people now and in this mission I am coming across various such cases.
I shall keep you informed the success stories regularly.
In the meantime please let me know whether the consumer court can be a better forum if such cases of abuse of law and misuse of power which definitely is deficiency in service by banks ?
More in my next.
I C Naik
Thanks Vasantbhau
For such a nice mission. Will be glad to know more about success of your mission. Do share your experiences with www.indiancooperative.com
