Sir,
I am to state that I am one esteemed customer and banking with Bank Of Maharashtra since 1999. I have availed various limits from their Bank from time to time and have successfully closed the limits without any irregularity.
With reference to the above, I do hereby inform that I am the victim of an accidental fire caused due to electrical short circuit at my shop dated 2nd March, 06 and subsequently my shop was closed and insurance claim was made to the insurance company on 03rd of March, 06. This was also informed to the Bhubaneswar Branch of the Bank from where I have availed the loan for a total limit of eight lakhs (5 lakhs + 2 lakhs + 1 lakh) only on my account. All the limits of the Bank had been properly utilized for the business purpose of my firm. I was unable to recover anything after the fire and all my goods and stocks were destroyed. I am a genuine borrower and have turned defaulters for no faults of mine. My business activities have halted from the 02nd of March, 2006 and account remained substandard till today. The unit has been in commercial production for at least last six years prior to 2006 and bank has been a social partner to my business. I have asked for rehabilitation and rephasement of my unit for the good-self of my business and my suppliers. I also requested for the rehabilitation proposal to be implemented at the earliest to save me from going deep into the debt trap. During this interim period, I also requested the bank to do 'holding operation', allowing my sick unit to draw funds from the cash credit account, up to the extent of the deposited sale proceeds. But the Bank had not came upto my rescue.
I have made Insurance for Rs. 12 lakhs for my entire stocks and made payment of its premium in due time out of which Banks liability was of Rs. 8 lakhs only and the rest being my contribution. The loss caused due to damage in the fire accounts to Rs 14.14 lakhs and insurance company after a long battle of three years have allowed a sum of Rs 10, 78, 779/- without any interest out of which Rs. 47, 250/- was for furniture’s and fixtures as full and final settlement of our claim.
Since then, I am suffering like anything on loosing my shop and livelihood. I am managing my life with a very miserable condition without having any assistance from the Bank though I have applied for reconsideration for 2-3 times. The circumstances were beyond my control due to which my business become sick after the accidental incident and adding to that the bank has rejected rehabilitation proposal to rephase and rehabilitate my organization. Instead of showing sympathy and other reconsideration to my application, the Branch Manager and the Assistant General Manager have issued advocate notice and securitization notice to sale my parental property, while I am in a very miserable condition where everything is lost. During such time, the bank did not provide me timely and adequate financial assistance and I have gone through acute financial miseries, loss and damages and then dragged to face undesirable litigation for recovery of alleged dues. The Branch Manager did not give any co-operation for the settlement of the dues. In other hand he threatened me to take action and dispose off my parental property through Securitization Act. Bank may extend some waiver of interest portion under the Govt. subsidies scheme. I have availed loan from the bank on numerous of occasions and all the time have been able to close my account without irregularity.
I have kept on writing to the AGM, RO; GM (Recovery), HO and the CMD, HO, for rephasement and rehabilitation of my unit or else it might turn sick as I have gone through a terrible mishap due the accidental fire. But still then, none of them turned up to save my unit. This was not only the source of my livelihood, but also many poor villagers, who used to supply me goods of handicrafts items and rely upon my business for their livelihood. Most of them are still awaiting the realiastion of the payment from Insurance Company for their stocks those got destroyed in fire, while the payments were due to them. My trading unit has been the real temple which was providing livelihood to me and generating real wealth for my family and the poor suppliers as well. The possibility of the poor craftsmen may protest/strikes and also committing suicide cannot be ruled out if their dues are not paid. And I do not have any other means to repay them apart from the source of the payment of the insurance which had been specifically paid by the Insurance Company for the damage of their goods retained in my shop for sale. But the same have been digested by the bank with the exorbitant rate of interest charged. I feel helpless and refrain myself negotiating with them since the local authorities of the Bank have ceased the payment disbursed against the dues of my shop and have mounted exorbitant rate of interest to protect their money lending business. I have also prayed the Bank authorities that the claim settled by the Insurance Company does not even meet the principal losses of my stocks and that to retain the principal dues only, so that the liabilities of the other creditors (suppliers/craftsmen) can me met upto a certain extent, but the Bank has not considered this and left us no options apart from begging on the street.
Meanwhile, I had written a Compromise proposal for One Time settlement to the bank, since my unit had been sick due to Fire, which is an Act of God, I humbly pray that my loan has become bad not because of irregularity but for an Act of God and therefore Bank may consider my proposal generously. The delay caused by the banks in coming up for rescue of my unit before it becomes totally sick was never considered in the rehabilitation plan. Thus my unit already sick was overburdened without its fault. The inefficiency of bank converted the incipient sickness into regular and then chronic malady. With passage of time, the recovery suit was filed by the bank without even considering the facts and reasons of the unit becoming sick.
I humbly pray to speak that I am a graduate and have started the business in the year 1999 as my source of self employment and even providing income opportunities to the poor sectors by purchasing products from them and distributing them through big markets. My unit aims at wealth creation, employment and better quality of life for the masses. Many village people were associated as they used to manufacture handicrafts goods by themselves and their groups and deliver them at my shop for sale. Hence, I presume, my mission should have been supported by the Financial Institution and the Government to rebuild and also provide us additional assistance to help us grow, instead leveraging exorbitant rate of interest and harassing us.
In the view of the above I would like to put forth the following few lines for your kind consideration.
1. My unit has become sick due to an accidental fire incident and it requires nourishes like refreshment, rehabilitation as well as waiver of interest portion from the date of Incident i.e 02/03/2006. And I presume mine is an eligible one under RBI subsidize scheme where a natural disaster had took place which is an Act of God.
2. In my Letter dated 06th Oct, 2007 addressed to the Branch Manager, for rephasement and rehabilitation of my unit and Copy endorsed to the AGM, Regional Office, I had asked the bank to give some additional finance. But the bank did not turn upto my rescue.
3. I have submitted a proposal with an initial deposit of Rs. 20000/- (10000+10000) in both the accounts on 16th Feb, 09, as per the version of Authorized Officers of the Bank, but till date bank has failed to comply/reply my proposal.
4. After that a sum of Rs. 50000/- had been deposited and once again the copy of the proposal had been addressed to the AGM, Regional Office, Kolkata for his consideration, but similarly there had been no reply from those responsible executives as well.
5. Mr. Ray, currently designated as the Branch Head of Bhubaneswar Branch, Bank Of Maharashtra, had taken my matter very personally and strongly objected me not to recommend my matter to their higher authorities for consideration at all conditions although the fact that I have been a victim of Fire which is an Act of God and have incurred a total loss of stocks, furniture’s, etc worth more than 14.00 Lakhs.
6. The unit has been in commercial production for at least last six years prior to 2006. Bank has financed my unit various times and had closed the accounts as per schedule and excellent repayment. Despite having such a good track record with the bank, the bank did not even find it appropriate to consider my case sympathetically. Mr. Ray misused his position to keep his challenges.
7. AGM Mr. Hada had assured that he has instructed Mr. Ray, Branch Manager to fully co-operate and help in waiving off all the interest charged on the account after being named to NPA, though I could not prove any documentary evidence to it since it was a verbal assurance. But Mr. Ray implemented the maximum possible interest at the rate of 14% p.a and compounded it every month and mounted it as an additional burden on my accounts and making full use of his powers to ruin my business and sucking blood out of me so that I shall be in no condition paying my poor craftsmen and suppliers.
8. It is very certain that the Bank has thrown me down to the street to beg, but may I kindly be forgiven to say where is the “social banking” seemed from this attitude of the bank? It not only pushed me from self employed to unemployed, but also paralyses me from clearing the dues of the poor craftsmen, who have done hard labor preparing their articles and supplying them at my counter for sale.
9. Please note:
My Letter dated 25th September, 2007 addressed to the Branch Manager, Bhubaneswar.
My Letter dated 06th Oct, 2007 addressed to the Branch Manager, for rephasement and rehabilitation of my unit and Copy endorsed to the AGM, Regional Office.
Your Advocate Mr. L.N Mohanty, Bhubaneswar, reply vide Letter dated 11th March, 2008.
Reply to Your Advocate Mr. L.N Mohanty’s comments on my account vides letter dated 08th April, 2008 and Copy endorsed to CMD, HO.
Notices for Securitisation of Equitable Mortgage vide No: AX9/Recovery/Sarfaesi/2008 dated 22nd Dec, 2008.
My second letter addressed to the AGM, Kolkata with the same proposal after another deposit of Rs 50000/- in my letter dated 25th Feb, 2009.
My Grievance letter addressed to the General Manger, Recovery, Head Office in my letter dated 25th March, 2009.
My Grievance letter addressed to the Chairman and Managing Director, Head Office in my letter dated 25th March, 2009.
My Compromise proposal for One Time Settlement addressed to the General Manger, Recovery, Head Office in my letter dated 27th March, 2009.
My letter Ref No: JD/BBS/002/09-10 dated 02nd April, 2009 addressed to the Branch Manager, Bhubaneswar, for refund of the Balance amount after clearing the Bank dues under OTS.
10. Banks had not even turned up once and have not yet responded/replied to any of my letters, instead, I have been served with a Possession letter of my fathers property where we reside, which I received on 27th of March, 09. The particulars of the letter mentioned underneath:
i. Letter was dated 12th of March, 09
ii. Possession to be taken on 23rd of March, 2009 and I was asked to be present there but fortunately nobody turned up that day.
iii. This letter was registered for dispatch in the Postal on dated 24th March, 09. i.e one date after the possession time and schedule.
iv. I suppose, the letter clearly sent to harass me and put me in trouble without notifying proper time and schedule.
In view of the above facts and evidences, the Bank may kindly be asked to compensate me for the false oral promises, continuous humiliating by sending their recovery executive and creating harassment by sending such letter instead of co-operating with me for closure of the account by settling the issue. I have applied for One Time Settlement, not because I want to avoid paying Banks dues intentionally, but as because I had gone through a terrible mishap caused due to fire, thus having lost my shop, business and market goodwill and all my sources of income had totally stopped for the last three years since the date of accident. As a genuine and innocent borrower, I feel trapped, helpless, victimized and cheated by the bank. I find it bare survival difficult as I leave alone legal fight with the bank that have no such financial problems for litigation and I file this with a compensation amount of Rs4, 00, 000/- (Four Lakhs only) for the sustenance of me and my family apart from whatever reversal of interest awarded by the Honorable Ombudsman. Furthermore, adding on to that, Bank shall be held liable for any unexpected happening caused by the craftsmen’s/suppliers whose right of payment has been latched by the Bank. I further retreat that I have written my grievance to the Chairman and Managing Director of the bank and astonished having getting no sympathy from him as well and I may kindly be forgiven to speak that I am an young entrepreneur and have lost everything due to an Act of God and how come such rules are there prohibiting such sympathetic view.
I therefore, pray your Good Office, to look into the facts and situation sympathetically by restricting payment to the bank with the principal dues as on date of incident and enable me clear the dues of the suppliers/craftsmen, so that they sustain to continue their livelihood and myself as well clearing their dues. I also pray for compensation from the bank for its behavior. I am genuine, honest young entrepreneur and my record with the bank for last many years speaks for itself. I beg to importune my prayer and entreat your kindness by justifying me.
I may kindly be forgiven if I have misused any words as because the injustice has been too harsh on me and it is pretty understandable. So request you to kindly overlook those.
Thanking You,
Faithfully Yours,
Janardhan Sahoo
Prop: M/S J.D Traders, B/50, Ruchika Market, Baramunda, Bhubaneswar: 751003
Phone : [protected]
Account No : CC 50028 ([protected]), LOP-174 ([protected])
Enclosures: As Above
CC: To the Chairman and Managing Director, Bank Of Maharashtra, Head Office, Pune
From
Janardhan Sahoo
Prop: J.D Traders
B/50, Ruchika Market, Baramunda
Bhubaneswar: 751003
To
The Ministry Of Finance
Government of India
Bhubaneswar
Sub: Complaint against Bank Of Maharashtra, Bhubaneswar Branch
Ref: Letters of Communications with the Bank of Maharashtra. (Copies Attached)
Sir,
I am to state that I am one esteemed customer and banking with Bank Of Maharashtra since 1999. I have availed various limits from their Bank from time to time and have successfully closed the limits without any irregularity.
With reference to the above, I do hereby inform that I am the victim of an accidental fire caused due to electrical short circuit at my shop dated 2nd March, 06 and subsequently my shop was closed and insurance claim was made to the insurance company on 03rd of March, 06. This was also informed to the Bhubaneswar Branch of the Bank from where I have availed the loan for a total limit of eight lakhs (5 lakhs + 2 lakhs + 1 lakh) only on my account. All the limits of the Bank had been properly utilized for the business purpose of my firm. I was unable to recover anything after the fire and all my goods and stocks were destroyed. I am a genuine borrower and have turned defaulters for no faults of mine. My business activities have halted from the 02nd of March, 2006 and account remained substandard till today. The unit has been in commercial production for at least last six years prior to 2006 and bank has been a social partner to my business. I have asked for rehabilitation and rephasement of my unit for the good-self of my business and my suppliers. I also requested for the rehabilitation proposal to be implemented at the earliest to save me from going deep into the debt trap. During this interim period, I also requested the bank to do 'holding operation', allowing my sick unit to draw funds from the cash credit account, up to the extent of the deposited sale proceeds. But the Bank had not came upto my rescue.
I have made Insurance for Rs. 12 lakhs for my entire stocks and made payment of its premium in due time out of which Banks liability was of Rs. 8 lakhs only and the rest being my contribution. The loss caused due to damage in the fire accounts to Rs 14.14 lakhs and insurance company after a long battle of three years have allowed a sum of Rs 10, 78, 779/- without any interest out of which Rs. 47, 250/- was for furniture’s and fixtures as full and final settlement of our claim.
Since then, I am suffering like anything on loosing my shop and livelihood. I am managing my life with a very miserable condition without having any assistance from the Bank though I have applied for reconsideration for 2-3 times. The circumstances were beyond my control due to which my business become sick after the accidental incident and adding to that the bank has rejected rehabilitation proposal to rephase and rehabilitate my organization. Instead of showing sympathy and other reconsideration to my application, the Branch Manager and the Assistant General Manager have issued advocate notice and securitization notice to sale my parental property, while I am in a very miserable condition where everything is lost. During such time, the bank did not provide me timely and adequate financial assistance and I have gone through acute financial miseries, loss and damages and then dragged to face undesirable litigation for recovery of alleged dues. The Branch Manager did not give any co-operation for the settlement of the dues. In other hand he threatened me to take action and dispose off my parental property through Securitization Act. Bank may extend some waiver of interest portion under the Govt. subsidies scheme. I have availed loan from the bank on numerous of occasions and all the time have been able to close my account without irregularity.
I have kept on writing to the AGM, RO; GM (Recovery), HO and the CMD, HO, for rephasement and rehabilitation of my unit or else it might turn sick as I have gone through a terrible mishap due the accidental fire. But still then, none of them turned up to save my unit. This was not only the source of my livelihood, but also many poor villagers, who used to supply me goods of handicrafts items and rely upon my business for their livelihood. Most of them are still awaiting the realiastion of the payment from Insurance Company for their stocks those got destroyed in fire, while the payments were due to them. My trading unit has been the real temple which was providing livelihood to me and generating real wealth for my family and the poor suppliers as well. The possibility of the poor craftsmen may protest/strikes and also committing suicide cannot be ruled out if their dues are not paid. And I do not have any other means to repay them apart from the source of the payment of the insurance which had been specifically paid by the Insurance Company for the damage of their goods retained in my shop for sale. But the same have been digested by the bank with the exorbitant rate of interest charged. I feel helpless and refrain myself negotiating with them since the local authorities of the Bank have ceased the payment disbursed against the dues of my shop and have mounted exorbitant rate of interest to protect their money lending business. I have also prayed the Bank authorities that the claim settled by the Insurance Company does not even meet the principal losses of my stocks and that to retain the principal dues only, so that the liabilities of the other creditors (suppliers/craftsmen) can me met upto a certain extent, but the Bank has not considered this and left us no options apart from begging on the street.
Meanwhile, I had written a Compromise proposal for One Time settlement to the bank, since my unit had been sick due to Fire, which is an Act of God, I humbly pray that my loan has become bad not because of irregularity but for an Act of God and therefore Bank may consider my proposal generously. The delay caused by the banks in coming up for rescue of my unit before it becomes totally sick was never considered in the rehabilitation plan. Thus my unit already sick was overburdened without its fault. The inefficiency of bank converted the incipient sickness into regular and then chronic malady. With passage of time, the recovery suit was filed by the bank without even considering the facts and reasons of the unit becoming sick.
I humbly pray to speak that I am a graduate and have started the business in the year 1999 as my source of self employment and even providing income opportunities to the poor sectors by purchasing products from them and distributing them through big markets. My unit aims at wealth creation, employment and better quality of life for the masses. Many village people were associated as they used to manufacture handicrafts goods by themselves and their groups and deliver them at my shop for sale. Hence, I presume, my mission should have been supported by the Financial Institution and the Government to rebuild and also provide us additional assistance to help us grow, instead leveraging exorbitant rate of interest and harassing us.
In the view of the above I would like to put forth the following few lines for your kind consideration.
1. My unit has become sick due to an accidental fire incident and it requires nourishes like refreshment, rehabilitation as well as waiver of interest portion from the date of Incident i.e 02/03/2006. And I presume mine is an eligible one under RBI subsidize scheme where a natural disaster had took place which is an Act of God.
2. In my Letter dated 06th Oct, 2007 addressed to the Branch Manager, for rephasement and rehabilitation of my unit and Copy endorsed to the AGM, Regional Office, I had asked the bank to give some additional finance. But the bank did not turn upto my rescue.
3. I have submitted a proposal with an initial deposit of Rs. 20000/- (10000+10000) in both the accounts on 16th Feb, 09, as per the version of Authorized Officers of the Bank, but till date bank has failed to comply/reply my proposal.
4. After that a sum of Rs. 50000/- had been deposited and once again the copy of the proposal had been addressed to the AGM, Regional Office, Kolkata for his consideration, but similarly there had been no reply from those responsible executives as well.
5. Mr. Ray, currently designated as the Branch Head of Bhubaneswar Branch, Bank Of Maharashtra, had taken my matter very personally and strongly objected me not to recommend my matter to their higher authorities for consideration at all conditions although the fact that I have been a victim of Fire which is an Act of God and have incurred a total loss of stocks, furniture’s, etc worth more than 14.00 Lakhs.
6. The unit has been in commercial production for at least last six years prior to 2006. Bank has financed my unit various times and had closed the accounts as per schedule and excellent repayment. Despite having such a good track record with the bank, the bank did not even find it appropriate to consider my case sympathetically. Mr. Ray misused his position to keep his challenges.
7. AGM Mr. Hada had assured that he has instructed Mr. Ray, Branch Manager to fully co-operate and help in waiving off all the interest charged on the account after being named to NPA, though I could not prove any documentary evidence to it since it was a verbal assurance. But Mr. Ray implemented the maximum possible interest at the rate of 14% p.a and compounded it every month and mounted it as an additional burden on my accounts and making full use of his powers to ruin my business and sucking blood out of me so that I shall be in no condition paying my poor craftsmen and suppliers.
8. It is very certain that the Bank has thrown me down to the street to beg, but may I kindly be forgiven to say where is the “social banking” seemed from this attitude of the bank? It not only pushed me from self employed to unemployed, but also paralyses me from clearing the dues of the poor craftsmen, who have done hard labor preparing their articles and supplying them at my counter for sale.
9. Please note:
My Letter dated 25th September, 2007 addressed to the Branch Manager, Bhubaneswar.
My Letter dated 06th Oct, 2007 addressed to the Branch Manager, for rephasement and rehabilitation of my unit and Copy endorsed to the AGM, Regional Office.
Your Advocate Mr. L.N Mohanty, Bhubaneswar, reply vide Letter dated 11th March, 2008.
Reply to Your Advocate Mr. L.N Mohanty’s comments on my account vides letter dated 08th April, 2008 and Copy endorsed to CMD, HO.
Notices for Securitisation of Equitable Mortgage vide No: AX9/Recovery/Sarfaesi/2008 dated 22nd Dec, 2008.
My second letter addressed to the AGM, Kolkata with the same proposal after another deposit of Rs 50000/- in my letter dated 25th Feb, 2009.
My Grievance letter addressed to the General Manger, Recovery, Head Office in my letter dated 25th March, 2009.
My Grievance letter addressed to the Chairman and Managing Director, Head Office in my letter dated 25th March, 2009.
My Compromise proposal for One Time Settlement addressed to the General Manger, Recovery, Head Office in my letter dated 27th March, 2009.
My letter Ref No: JD/BBS/002/09-10 dated 02nd April, 2009 addressed to the Branch Manager, Bhubaneswar, for refund of the Balance amount after clearing the Bank dues under OTS.
10. Banks had not even turned up once and have not yet responded/replied to any of my letters, instead, I have been served with a Possession letter of my fathers property where we reside, which I received on 27th of March, 09. The particulars of the letter mentioned underneath:
i. Letter was dated 12th of March, 09
ii. Possession to be taken on 23rd of March, 2009 and I was asked to be present there but fortunately nobody turned up that day.
iii. This letter was registered for dispatch in the Postal on dated 24th March, 09. i.e one date after the possession time and schedule.
iv. I suppose, the letter clearly sent to harass me and put me in trouble without notifying proper time and schedule.
In view of the above facts and evidences, the Bank may kindly be asked to compensate me for the false oral promises, continuous humiliating by sending their recovery executive and creating harassment by sending such letter instead of co-operating with me for closure of the account by settling the issue. I have applied for One Time Settlement, not because I want to avoid paying Banks dues intentionally, but as because I had gone through a terrible mishap caused due to fire, thus having lost my shop, business and market goodwill and all my sources of income had totally stopped for the last three years since the date of accident. As a genuine and innocent borrower, I feel trapped, helpless, victimized and cheated by the bank. I find it bare survival difficult as I leave alone legal fight with the bank that have no such financial problems for litigation and I file this with a compensation amount of Rs4, 00, 000/- (Four Lakhs only) for the sustenance of me and my family apart from whatever reversal of interest awarded by the Honorable Ombudsman. Furthermore, adding on to that, Bank shall be held liable for any unexpected happening caused by the craftsmen’s/suppliers whose right of payment has been latched by the Bank. I further retreat that I have written my grievance to the Chairman and Managing Director of the bank and astonished having getting no sympathy from him as well and I may kindly be forgiven to speak that I am an young entrepreneur and have lost everything due to an Act of God and how come such rules are there prohibiting such sympathetic view.
I therefore, pray your Good Office, to look into the facts and situation sympathetically by restricting payment to the bank with the principal dues as on date of incident and enable me clear the dues of the suppliers/craftsmen, so that they sustain to continue their livelihood and myself as well clearing their dues. I also pray for compensation from the bank for its behavior. I am genuine, honest young entrepreneur and my record with the bank for last many years speaks for itself. I beg to importune my prayer and entreat your kindness by justifying me.
I may kindly be forgiven if I have misused any words as because the injustice has been too harsh on me and it is pretty understandable. So request you to kindly overlook those.
Thanking You,
Faithfully Yours,
Janardhan Sahoo
Prop: M/S J.D Traders, B/50, Ruchika Market, Baramunda, Bhubaneswar: 751003
Phone : [protected]
Account No : CC 50028 ([protected]), LOP-174 ([protected])
Enclosures: As Above
CC: To the Chairman and Managing Director, Bank Of Maharashtra, Head Office, Pune