‘Debtors troubled by pvt banks’ recovery agents’

KOCHI: The Kerala Chamber of Commerce and Industry (KCCI) has recorded 60 incidents from people who face threat and harassment from recovery agents who are employed by banks and nonbanking financial institutions (NBFCs) for recovering loans. The chamber stated that they received around 200 calls from distressed borrowers, and want the police to initiate action against goondas.Due to the outbreak of Covid-19 and resultant lockdown many traders have lost their businesses and income.
KCCI Youth Forum convener Rajesh Nair said that many private banks and NBFCs have not given the benefit of moratorium to their customers. “They employ agents to harass customers who are unable to repay loans. KCCI is not supporting any wilful defaulter. Instead of taking legal recourse they are using goondas for recovery. KCCI has already taken up the matter with the state government,” he said, adding that they are willing to share all details of the 60 incidents with authorities concerned.
Speaking about the issue, Justice (rtd) K Narayana Kurup said that creditors cannot resort to employ goondas to recover money. He said the Supreme Court has deprecated the employment of recovery agents for loan recovery. “That is against the concept of rule of law. It will result in utter chaos,” he said. Instead of using such illegal means the lenders should invoke provisions of arbitration in the agreement.
Many businessmen and prominent citizens have come out against banks and NBFCs for using illegal means to recover loans. Industrialist Kochouseph Chittilappilly said: “Government should be careful that nobody takes law into their own hands. This cannot be permitted.”
Former Tamil Nadu chief secretary and a crusader against corruption P C Cyriac described the issues of threats and harassment by recovery agents as a problem faced by ordinary people. As people have lost their jobs and income the government has provided moratorium. “The private moneylenders must also fall in line. If they harass people, the police should take action against them,” he said.