Madurai Bench of the Madras High Court on Thursday ordered notice to the Principal Secretary, Ministry of Finance; Regional Director, Reserve Bank of India; and Axis Bank in a case of non-return of security documents even after repayment of a loan.
Justice R. Mahadevan, who took up the case for hearing, also directed the respondents to file their counter in four weeks. The petitioner, K. Venkatesh, a rice mill owner, claimed that he had obtained a loan of ₹50 lakh (cash credit over limit) from Axis Bank, Rajapalayam, after submitting a post-dated cheque, ₹100 stamp paper and blank papers with signature. Though a no-objection certificate was given by the bank for clearing the loan, the bank authorities were yet to return the documents after repayment.
The repayment was not recorded in the Permanent Account Number (PAN), because of which the Credit Information Bureau India Limited (CIBIL) recorded the petitioner as defaulter, he contended.
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No valid reason was given by the bank and it did not respond to a legal notice. A representation for return of documents was made to the Ministry of Finance, Regional Director of Reserve Bank of India and Axis Bank authorities. But the request was not considered by them, said the petitioner.