Telangana HC criticises banks for harassing laymen, says big defaulters are ignored; seeks replies over Rs 1.16 crore deduction

HYDERABAD: The Telangana High Court on Friday criticised banks over the growing number of loan defaulters evading thousands of crores of rupees in repayments. The court observed that while banks turn a blind eye to such defaulters, they often harass ordinary individuals with various charges and penalties, even during the pre-closure of loans.The court was hearing a petition filed by Uttam Dhatu and Ispat Private, a private company. The firm alleged that in the process of pre-closing a loan secured against a property, the State Bank of India (Sanath Nagar branch) deducted 1.16 crore from its account without any prior communication or notice. The firm claimed that the bank's action violated RBI norms and sought directions to recover the amount from the bank, along with interest and a penalty.Justice CV Bhaskar Reddy directed the RBI, SBI, and HDFC Bank to file their counters, and adjourned the case for next date of hearing.