Canara Bank Manager fined by Consumer Commission for fraud in Tractor Loan

Shamli, Uttar Pradesh: A serious case of fraud by a bank has come to light in Uncha village, where the District Consumer Disputes Redressal Commission has imposed a fine of ₹6.10 lakh on Canara Bank and its branch manager. This penalty was given in connection with a tractor loan case involving a farmer named Virendra Kumar Chauhan.

According to Virendra, he had approached the Canara Bank branch in September 2019 to take a loan for buying a tractor for farming. After completing all the formalities and paperwork, the branch manager assured him that the loan amount (in the form of a draft) would be provided before Diwali in October. Based on this assurance, Virendra even paid an advance to the agency and booked the tractor.

However, just a day before the scheduled delivery, when he went to the bank to collect the draft, the branch manager refused to issue it. Left with no choice, the farmer bought the tractor by taking money on interest from other sources.

Later, when he obtained the Khatauni (land record), Virendra was shocked to discover that the bank had shown a tractor loan of ₹5 lakh in his name. The bank had even mortgaged his and his father’s land — all without giving him any money. He alleged that the loan amount was withdrawn fraudulently and embezzled by the branch manager.

Virendra filed a complaint with the Consumer Commission, and after several hearings, the commission found the bank and the branch manager guilty.

As a result, the commission ordered Canara Bank to pay ₹5 lakh to Virendra as compensation for the mental and financial distress caused. Additionally, ₹10,000 was awarded for litigation expenses. The branch manager was separately fined ₹1 lakh for service deficiency and unfair practices, and this amount must be deposited in the government treasury.

The commission has also sent a letter to senior bank officials and the Superintendent of Police (SP), recommending appropriate action be taken against the branch manager.