SC Calls Bank Recovery Agents ‘Goons’ For Withholding Vehicle

The Supreme Court has harshly criticized a bank’s recovery agent, labeling them a “group of goons” for refusing to return a vehicle seized from a man despite a one-time loan settlement.

The court ordered the West Bengal Police to file a charge sheet against the firm, M/s City Investigation and Detective, within two months.

A bench of Justices Surya Kant and Ujjal Bhuyan directed Bank of India to compensate Debasish Bosu Roy Chowdhury, who took a ₹15.15 lakh loan to purchase a bus in Kolkata. The bank is instructed to recover this compensation from the recovery agent, who returned the vehicle in a damaged condition with altered chassis and engine numbers.

The court noted, “Respondent No. 4, a recovery agent, in actuality appears to be a group of goons, who use their muscle power to harass loanees on behalf of the petitioner-bank.” The Supreme Court emphasized that the investigation into the FIR against the firm should be completed without delay, and the trial court should proceed with the case accordingly.

The Supreme Court also upheld a Calcutta High Court order requiring the bank to pay Chowdhury ₹5 lakh in interim compensation for not returning the vehicle. The High Court had allowed Chowdhury to seek higher compensation through civil court.

Chowdhury had defaulted on his loan repayments in 2018, leading the bank to hire the recovery agent to seize his vehicle. Despite agreeing to a One-Time Settlement (OTS) of ₹1.8 lakh in 2021, the recovery agent failed to return the vehicle in proper condition. The Supreme Court also suggested that the bank seek the cancellation of the recovery agent’s license.

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