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Decision No. CIC/SM/A/2010/001515/SG/14450
Appeal No. CIC/SM/A/2010/001515/SG
Relevant facts emerging from the Appeal:
Appellant : Mr. Kundan Kumar Sinha.
Chiragauda, Hirapur,
Dhanbad, 826001
Jharkhand.
Respondent : Mr. Nilendra Kumar
PIO & Sr. Manager
Punjab and Sindh Bank,
Main Branch, Katraas Road,
Dhanbad, Jharkhand.
RTI application filed on : 12/06/2011
PIO replied on : 21/07/2011
First Appeal filed on : 14/07/2011
First Appellate Authority order on : Not mentioned.
Second Appeal received on : 04/08/2011
Information Sought Reply of the PIO
1. Where is the Zonal Manager who was posted in the Zonal Sh. Vijay Srivastav, DGM, presently posted at
Office, Kolkata in the year 2005 posted? Punjab & Sindh Bank, Lead Bank Office,
Provide complete name and address of him. Sadik Road, Faridkot (Punjab).
2. From the year 2005 till date how many Zonal Managers and for Zonal Manager posted at ZO, Kolkata since
what time duration have been posted in the Zonal Office, Kolkata. 2005:
Provide complete names and addresses of them. i. Sh. Vijay Srivastava
ii. Sh. I.S. Chawla
iii. Sh. Rakesh Khurana
iv. Sh. Gurpal S. Malik (Present
Zonal Manager)
3. Where is the Group Manager co-Main Manager of Punjab and Sh. G.S. Bali, AGM, now posted at Regional
Sindh Bank, Ranchi in the year 2005 posted and at what post is he Office, Jammu.
employed?
Provide complete name and address of him.
4. From 2005 till date how many preferred Branch Managers Senior Manager posted at BO, Dhanbad since
have been posted in your Branch? How many of them have been 2005:
transferred? i. Sh. R.N. Malhotra Provide the names, addresses, posts of the above mentioned ii. Sh. N.K. Prabhat (Present Branch Managers alongwith details regarding present place where incumbent) they are posted.
5. What are the rules and regulations regarding home loans taken Proposed Borrower will be asked to follow
by your customers? policy guidelines of the Bank and to submit
loan application along with relevant papers
and documents.
6. Provide information regarding the documents asked for by your Following are the preliminary requirements
Bank, rules and regulations and how is the installment amount for home loan:
fixed if a customer requests for a home loan of Rs. 15,00,000. (a) Income Proof
(b) Balance Sheet
(c) Income Tax Return
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(d) Loan Application
(e) Legal opinion & valuation of property
(f) Project cost
(g) Permission for house construction
from the concerned authority.
Installments are fixed on the basis of
income of the applicant, amount of
loan and period of repayment of the
loan.
7. Why is it necessary to provide income related proof to your To assess the repayment capacity of the
bank at present and in past for getting a loan sanctioned? borrower.
8. From the year 2005 till date with how many N.P.A Accounts OTS are settled as per policy guidelines
has your Bank compromised and on what conditions, subject to framed by the RBI. Required information
One Time Settlement? involves third party and cannot be disclosed.
9. What is your Bank’s formula of One Time Settlement? Commercial Banks are governed by the RBI
Provide evidence regarding the same. for OTS and such policy from time to time.
10. Provide information regarding the formula of One Time Copy of Circular No. 197 enclosed (annexure
Settlement by the RBI. 1)
11. Provide information on what action has been taken by your BM, Dhanbad clarified that proposals
Bank on the suggestions provided by us on the subject of submitted by Sh. Kundan Kr. Sinha dated
repayment of loan. 16/05/2008, 26/06/2008, 26/07/2008,
20/04/2010, 10/06/2010 are enclosed,(annex2
12. Provide copies of all the actions by your Bank regarding the Date of N.P.A. of the account is 30/09/2005.
suggestions made by us till date about repayment of loan.
13. When was Customer Store Current Account 3942 declared to In each and every case-Bank communicates to
be N.P.A? each and every borrower.
What directions have been issued in this regard by your Bank’s
Head Office and the RBI?
Provide evidence regarding the same.
14. Provide information regarding the calcification done by you In each and every case-Bank communicates to
after declaring N.P.A. each and every borrower.
Has it been done as per the directions of your Bank’s Head Office
and the RBI?
Provide a copy of the decision of Justice N.N. Tiwari, Ranchi
High Court in Satan Commodities Vs. Panjab & Sindh Bank
subject to Article 141 of the Constitution Of India.
15. Is there any provision for considering the proposal by the SRFAESI Notice is issued as per the Act after
Borrower in a situation where notice has been issued after a Loan turning the account into N.P.A.
account has become N.P.A.?
Or, is there a provision for issuing a notice straightway as per
Sectio 13/2 and 13/4 of the Sarfaci Act?
What are the directions of your Bank’s Head Office and the RBI
regarding this?
Provide photocopies.
16. Is it enough conviction to return the suggestions given by me You have sought comments, not information
in the year 2006 by saying that they do not comply with the bank
norms?
17. I had asked for a copy of the bank norms by registered speed You are seeking photocopy of which ‘norms’-
post dated 24/01/2010. not clarified.
How long should it take by your Bank to provide the copy?
What time limit has been set by your Bank’s Head Office?
19. What action has been taken by your Bank on the suggestion
sent by us dated 29/04/2010?
20. Is it compulsory for your Bank to compromise for One Time BM, Dhanbad has clarified that since no offer
Settlement, subject to Sardar Associate Vs. P&S.B. and Satyam was received in terms of Bank’s policy
Commodities Vs. P&S.B. Honorable Jharkhand High Court’s guidelines in response to his letter dated
decision, Constitution of India Article 14, Honorable Apex Court 16/05/2008 and the same was not forwarded
as reported in 2009 (10) 410-2009/AIR S.C.W. 5886 Sardar to higher authority.
Associate Vs. P&S.B. Copy attached for your perusal.
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Also, a request letter was sent to you and your Bank’s preferred
post-holder by registered speed post dated 19/03/2010 regarding
O.T.S.
21. A positive format of our suggestions under revised guidelines BM, Dhanbad has clarified that no concrete
for compromise settlement of chronic N.P.A.S of Public Sector proposal was submitted by Sh. Kundan Kr.
Bank issued by RBI; para no. 5 & 6 was to be made and produced Sinha, thus the case was not forwarded to
before S.M.D and preferred post-holders of your Bank, by you higher authorities.
within 3 months.
Provide information regarding all the conversations you have had
with your Bank’s Head Office in this regard. Also, provide a copy
of the Head Office’s replies.
22. Is your Bank’s policy to work for the public’s interest or any Ours is a Public Sector Bank owned by the
other? Govt. of India and obviously functioning in
the interest of the public.
23. What is your bank’s responsibility in a situation where a loan Every N.P.A. account has its own character:
account is declared N.P.A and the suggestion given by the Bank may move for rehabilitation to recovery
Borrower does not fall under the bank norms? through negotiation or legal recourses or
SRFAESI depended on merits of the case.
24. Was any invitation letter (Do you need any help?) sent by BM, Dhanbad clarified that no facility is
your Bank to me? extended to willful defaulter.
If yes, provide a copy of the same.
25. Provide copies of directions by your Bank and the RBI in case Please see reply at SI. No. 23 above.
a loan account is declared N.P.A. and the Borrower provides
suggestions.
26. Provide statement of the legal expense and court fees paid by Following legal expenses have been incurred
your Bank due to us. by the Bank:
RC Charges-Consumer Store -Rs. 24140.00
RC Charges-Sh. Kundan Sinha-Rs. 4600.00
DRT Ranchi- -Rs. 5500.00
Property Valuation Charges- -Rs. 3322.00
27. Provide statement of the interest due on Current Account- BM, Dhanbad clarified that rate of interest
3942 from 2006 till date. charged as applicable and advised by H.O.
And, and what rate has it been charged? from time to time has been charged till June,
2007 and at the rate of PLR existing after that
till today. Statements of a/c is enclosed.
(Annex. 3)
28. If a loan has been sanctioned by your Bank and the Borrower In case of TL-three installments become
pays one installment but fails to pay the other installment(s) due overdue and in the case of CC/OO-account is
to some unforeseen event, after how many days will it be declared out of order for more than three months or
N.P.A. by you? interest is not serviced for more than three
How many days after declaring it as N.P.A. will the notice be sent months-accounts are declared N.P.A. If
under the Surface Act? borrower fails make his account regularized,
Provide a copy of the directions passed by your Bank and the RBI Bank may pursue rehabilitation or recovery
in this regard. through legal recourses or SRFAESI Action
29. Generally, banks provide loans to two categories of people: according to merits of the borrower.
i) Need-based
ii) Security-based. Commercial Banks make all advances
Do I fall under any category, at present? according to merit of the proposal and needs
of the borrowers.
Grounds for the First Appeal:
Unsatisfactory reply of the PIO.
Order of the First Appellate Authority (FAA):
Not enclosed.
Ground of the Second Appeal:
Unsatisfactory reply of the PIO.
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Relevant Facts emerging during Hearing:
The following were present
Appellant: Mr. Kundan Kumar Sinha on video conference from NIC-Dhanbad Studio;
Respondent: Mr. Nilendra Kumar, PIO & Sr. Manager on video conference from NIC-Dhanbad
Studio;
PIO has provided most of the information but is directed to provide the following information
to the Appellant:
1- Query-2: The period during which the Zonal Managers were posted.
2- Query-4: The balance information to be provided.
The Appellant has been given most of the information and it appears that the Appellant is seeking to
get a grievance redressed by asking multiple queries covering a wide range of topics.
Decision:
The Appeal is allowed.
The PIO is directed to provide the information as directed above to the Appellant
before 30 September 2011.
This decision is announced in open chamber.
Notice of this decision be given free of cost to the parties.
Any information in compliance with this Order will be provided free of cost as per Section 7(6) of RTI Act.
Shailesh Gandhi
Information Commissioner
07 September 2011
(In any correspondence on this decision, mention the complete decision number. (NS)
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