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RBI exposed: City firm complains of nexus with Private Banks in hampering consumer interests

By Sridhar Dharmasanam

Hyderabad: In a rare case of a fight against deep-rooted nepotism and red tape in the country’s top economic institution, Reserve Bank of India (RBI), a city based private firm has lodged a legal complaint against its’ top officials here today.

According to the reliable sources, M/s. Universal Packers and Movers represented by its proprietor D. Bharath Kumar lodged a complaint with the Saifabad police today alleging that the RBI officials had deliberately closed his complaint (No. 244.04.08.001/2016) against HDFC Bank and M/s.  Magma Fin Corp Ltd. Regarding their role in seizure of his Container vehicle without ascertaining and verifying tangible evidences produced by him. He further charged that the Consumer Education & Protection Department of the RBI has completely ignored his pleas and failed to protect consumer interest by arriving at a decision basing on the fabricated report submitted by the accused bank with a malafide intention to safeguard the Baker’s interests.

“I already won the case against HDFC which illegally seized my container vehicle through its agent Magma Fin Corp Ltd. Now a case of contempt of court against the bank is pending with the honourable court. Meanwhile, I approached the RBI seeking cancellation of their licenses. But the Deputy General Manager of the RBI’s Consumer Education and Protection Cell (CEPC) in his reply dated Oct.13, 2016 informed that my complaint was closed as my loan account was declared as Non-Performing Asset (NPA) by the HDFC which is contradicting the court judgment. Hence, this act of RBI tantamount to not only contempt of court, but also amounts to encouraging violation of Section 31 S/S ‘a’ & ‘e’ in Sarfaesi Act 2002 between originator i:e Bank and its’ NBFC/AFC under various sections of Contract Act 1872”, said Bharath Kumar.

He has been waging a legal battle against HDFC after his DCM Container vehicle was seized ever since 2006 by the bank. He was even awarded the court decree to deliver the truck on a road-worthy condition. However, it was not executed for the reasons best known to them and the same is now pending with the court for further orders.

The case is all set to create ripples as it exposes the corrupt practices of RBI officials and their deep-rooted nexus with the corporate banks in cashing in on the consumers’ helplessness and lack of knowledge about legalities involved in it only exploit consumers to their best advantage. The RBI is supposed to safeguard and protect the larger interests of the consumers in the country. This kind of nexus between the RBI and the Corporate banks would undermine the interests of Consumers which is a clear violation of Prudential Norms and guidelines issued by the RBI to Schedule Banks and the National Banks. However, RBI officials are tight-lipped over the matter and refused to comment on the issue.

Meanwhile, SHO of Saifabad, K.Purnachander confirming the receipt of complaint said that the action would be initiated after seeking legal opinion on the matter. The legal counsel for the firm Mogilla Srinivas Rao expressed dismay over the deep neck illegitimate bondage between RBI and the corporate banks. He said the racket has caused enormous loss to the vehicle borrowers in the country. "According to an estimation, there are more than 2 lakh vehicles were said to have been seized illegally and the owners' were put to heavy losses", he added.

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