CONSUMER COMMISSION FINED BANK MANAGER

CONSUMER COMMISSION FINED BANK MANAGER

24-JULY-ENG 5

RAJIV NAYAN AGRAWAL

SASARAM---------------------------Delivering a significant verdict after nearly six years regarding the rejection of a Kisan Credit Card (KCC) loan, the District Consumer Disputes Redressal Commission has imposed a fine of ₹30,000 on Krishna Kumar—the then Branch Manager of Corporation Bank (now Union Bank)—and the bank's Zonal General Manager. In its order, the Commission directed the opposing bank officials to pay the fine amount to the complainant within 60 days; failing this, simple interest at the rate of 9% per annum would also be payable on the amount until the actual date of payment. It is worth noting that Shiv Shankar Tiwari, a resident of Soni village under the Kargahar police station area of ​​Rohtas district, had submitted an application to the Corporation Bank (now Union Bank) branch located at the Kachhari (court complex) in Sasaram, seeking a loan through the Kisan Credit Card scheme for agricultural purposes. Acting on the bank manager's instructions, the farmer submitted all necessary loan documents and deposited a total of ₹7,560 in various fees; however, the loan was not granted.

Despite the completion of land verification, document submission, and fee payment, the then-bank manager, Krishna Kumar, demanded an additional ₹40,000 from the farmer in exchange for sanctioning the loan. When the farmer refused to pay this amount, the bank manager adopted a vindictive attitude and stalled the matter for nearly two years, causing the farmer physical, mental, and financial distress.

Frustrated by the bank manager's arbitrary conduct, the farmer approached the District Consumer Commission for justice in 2019. Following lengthy hearings and an examination of the evidence presented by the complainant, the District Consumer Forum has now delivered a significant verdict in the farmer's favor, citing a deficiency in banking services. The Commission has ordered the payment of a lump sum of ₹30,000 to the complainant to compensate for the physical, mental, and financial losses suffered, as well as to cover litigation costs.