Chennai Court Finds Kotak Mahindra Bank Guilty and imposed Fine for Overcharging Loan Customer
A Chennai court has found Kotak Mahindra Bank guilty of perjury and fined the institution Rs 1,50,000 for charging a customer excess money on a loan. The court also sentenced S. Karthikeyan, the bank’s legal head, to a three-term imprisonment for the mistake.
The case began with a complaint filed by R. Selvaraj, who claimed that the bank had charged him more money when he decided to close a loan he had taken in 2006. He had paid Rs 1.7 crore towards the loan a year later, but when he foreclosed the loan, the bank demanded more money.
Selvaraj noticed the issue when his auditor raised concerns about the extra charges. He then approached the bank for a detailed statement or a breakdown of the payments, but the bank refused to provide any. In response, Selvaraj took the matter to the Madras High Court and filed a criminal case against the bank.
Initially, the bank denied overcharging, stating in its affidavit that no extra money was collected. However, in 2012, after the court found that the customer was indeed overcharged, the bank transferred Rs 14,30,510 to Selvaraj.
In 2023, the High Court filed a perjury case against the bank and instructed a lower court to address the matter.
“I don’t want this to happen to anyone. That’s why I struggled so long,” Selvaraj commented, sharing his experience.
A senior official from Kotak Mahindra Bank commented on the court’s order, saying, “Yes, the order has been passed. I can’t say anything beyond that.”
