HC raps bank for bid to recover settled loan from two senior citizens

The Bombay high court on Wednesday rapped a nationalised bank for initiating recovery proceedings against a senior citizen and a super senior citizen after executing no dues certificates and release deeds for mortgaged property.

- Prateem Rohanekar

MUMBAI: The bank's action was "gross and shocking", the court said.

The court was hearing a plea by Urmiladevi Jain, 62, and Pannalal Jain, 97 — partners in Vardhaman Enterprises who owned a 40% stake in the firm. The duo claimed that the bank had ordered recovery of ₹2.40 crore from them for sale of properties under mortgage although they had paid ₹1.6 crore to settle their debt. The bank had even issued a no dues certificate and executed release deeds in their favour for the mortgaged properties.