The Madras High Court has declined to quash a criminal case filed against top officials of Kotak Mahindra Bank for alleged excess collection of Rs 28 lakh from a businessman while settling his loan dues in 2007.
Dismissing the petition by the bank Managing Director and others seeking quashing of the case against them, Justice R Mala said the charges, including 'falsification' of records, require to be probed.
The case was filed on the direction from the high court on a petition by a Tirunelveli-based theatre owner, who was a customer of the bank holding 18 different accounts, including mortgage and loan accounts.
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He had paid Rs 1.7 crore by a demand draft to settle the loans as demanded by the bank in 2007, but the latter did not provide the break up for the amount and also the statement of accounts.
The businessman later learnt that he had paid Rs 28 lakh in excess of the amount he owed to the bank.
As his compliant to the banking ombudsman was returned citing delay, he moved the high court and obtained a direction to the police to register an FIR. The bank officials had challenged the order in the high court.
The bank argued that it had power to adjust the sum in other accounts of a customer, and that it was a civil dispute.
Rejecting the contention, the Judge said the matter could not be termed as a civil dispute since she was of the view that the excess amount had been 'wantonly withheld' by the bank authorities without assigning any reason.
