Legal Question in Banking Law in India

COMPLAINT

COMPENSATION FOR INTENTIONALLY CAUSING GRAVE MENTAL HARASSMENT AND EXPENDITURES INCURRED DUE TO IN-APPROPRIATE AND UNLAWFUL DEFERMENT OF AUCTION LISTING ID : 268668

1. Reference to e-auction cum sale notice No Nil dated 19 August 2016 holding Listing ID : 268668, copy enclosed at Appx �A�.

2. Major General Debasish Roy, Additional Director General of Military Training (Army Education) and Head of Service (Army Educational Corps) of Integrated Headquarters of Ministry of Defence (Army) , New Delhi, had submitted all relevant documents alongwith the Bid Form as given in the notice including Earnest Money Deposit (EMD) of Rs 6,36,000.00 (Rupees Six lakhs thirty six thousand only) vide RTGS/UTR No : PUNBR-52016092712278727 in your State Bank Hyderabad, Regional Office : Region � II, Konnectus Tower � I, Unit No : 901B, 9th Floor, Bhavbhuti Marg, New Delhi � 110 002 as per the requirements mentioned in your Auction Notice under reference. E-mail Copy enclosed at Appx �B�.

3. The auction was suppose to be held on 29 September 2016 between 2.30 PM and 3.30 PM as mentioned in Serial Number � 01, Property No : 02 to e-auction in your Notice under reference.

4. The Notice of confirmation on holding the auction was also received from Bank Auction.IN on 29 September 2016 at 2:01 PM. E-mail copy attached at Appx �C�.

5. However, surprisingly it was intimated vide e-mail on 29 September 2016 at 2.58 PM that the auction is deferred. This information was received 28 Minutes after the scheduled commencement of the auction. The illogical and unlawful reasons quoted for deferment was �as only one Bidder had deposited Earnest Money Deposit (EMD) to participate in the auction�. Email attached at Appx �D�.

6. The undersigned participant Bidder had incurred an expenditure of about Rs 5,00,000/- (Rupees Five lakhs only)for the following purposes :-

(a) Employed persons for enquiries regarding encumbrance.

(b) Hired persons from checking the correctness of the Title of the Property.

(c) Hired persons from checking of Rights/dues of the Property.

(d) Hired person to advice on the costing of the Property.

(e) Pre-maturely discharged Fixed Deposits for payment of Earnest Money Deposit amount ,by incurring loss towards earning interests on maturity.

(f) Hired persons for participation in the auction on behalf of the undersigned, as the undersigned was on outstation Army duty to carry out a very important assignment.

7. Your Bank SBH, Regional Office : Region-II, Konnectus Tower � I, Unit No : 901B, 9th Floor, Bhavbhuti Marg, New Delhi � 110 002, has intentionally defaulted and had taken an un- lawful course on the following grounds :-

(a) Grossly violated the existing Policy on Bank Auctions.

(b) NO condition was laid in the e-auction notice that in case of Single Bidder the auction will be deferred, despite quoting a reserve price. Even there is no Policy of the Bank for deferring auction, in case of Single Bidder. Thus this is unlawful and violation of the policy.

(b) The auction was scheduled to be held on 29 September2016 from 2.30 PM to 3.30 PM. The information about Single Bidder was available with the Bank a day prior to the commencement of the auction. The intimation of deferment ,that too through e-mail, was communicated after 28 Minutes from the scheduled auction time.The extraordinarily delayed on intimation of deferment of auction caused Grave Mental Harassment to the undersigned.

(c) The Bank was requested to communicate about the unlawful actions being taken ,to appropriate level Officer positioned at the Head Office. Also it was requested to let the Bidder know, how many auctions have been affected by the Bank with Single Bidder vide e-mail of 29 September 2016 (Copy attached at Appx E). Moreover the decision on cancellation of auction was taken at 2.58 PM on 29 September 2016 i.e. 28 Minutes after the scheduled time , When the auction was to commence at 2.30 PM.

(d) Any Bank Auction is termed Failed Auction, when there is not even a single Bidder. Even if , there is a single Bidder , the Auction is carried out as a reserve price is fixed. However, in case of failed auction ,the property is placed for re-auction by reducing the previous reserve price by upto 20 % .

8. A summary of the time line based sequence of happenings are attached herewith at Appx �F� .

9. In view of the above, avoidable actions and unlawful decisions taken by your Bank causing financial loss to the undersigned due to the reasons given in Para 6 and Grave Mental Harassment, a compensation totalling an amount of Rs55,00, 000/- (Rupees fifty five lakhs only). [ Rs 5,00,000/- (Rupees five lakhs only) towards the reasons given in Para 6above and Rs 50,00,000/- (Rupees fifty lakhs only) for causing Grave Mental Harassment be paid to the undersigned Bidder ,at the earliest.

10. The compensation amount of Rs 55,00,000/- (Rupees fifty five lakhs only) may please be credited to my Saving Bank Account as per details given below within fifteen working days from the date of receipt of this Notice, failing which legal course through Consumer Court will be initiated :-

Name of Bank - Punjab National Bank

Branch - Chanakyapuri, New Delhi - 110 021

Thanking you .

Yours Sincerely,

Major General Debasish Roy

REPLY FROM BANK AS RECEIVED

Inconvenience regratted

REPLY BY COMPLANANT

REPLY BY COMPLAINANT

COMPENSATION FOR INTENTIONALLY CAUSING MENTAL HARASSMENT

AND EXPENDITURE INCURRED DUE TO INAPPROPRIATE AND UNLAWFUL

DEFERMENT OF AUCTION LISTING ID 268668

1. Please refer my e-mail dated 23 October 2016 and Assistant General Manager, State Bank of Hyderabad, Regional Office : Region � II, New Delhi letter No F/SARFAESI/ SUBHAYUSH/2955 dated 26 October 2016 (Scanned copy attached).

2. The undersigned Bidder is not at all satisfied with the reply initiated by Shri AVSS Prasad, Assistant General Manager, Regional Office : Region - II, State Bank of Hyderabad, New Delhi vide their letter No F/SARFAESI/ SUBHAYUSH/2955 dated 26 October 2016.

3. Further, It may be noted that the complaint will be submitted to Consumer Court for redressal on expiry of the stipulated time as per the Consumer Protection Act, on non receipt of satisfactory response within the period of one month from the receipt of my e-mail.

 

Thanks,

Regards

Major General Debasish Roy

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