Legal Question in Banking Law in India

loan agreement forgery

I am an NRI and got a loan disbursed through a bank. I had authorised a Power Of Attorney to sign the documents. He signed the

documents whereever the bank-rep had marked with X and also made sure to clearly select the option FIXED RATE terms and to not select

MONEY MARKET CLAUSE (MMC). After the loan was disbursed - the POA recd one original set of loan agreement and he noticed in two pages where he never signed - he finds that a new clause (MMC) was sticked

in the page and on the sticker someone has forged (most likely a bank employee in the loan department) POA's signature. My POA suspects it could be a forgery on the following reasons (1) he did

not sign those pages (as was not marked for signature from the bank (2) it is not his signature (3) ink and pen are different (4) there is also spelling mistake in the signature.

Question:

Should I (or POA) directly contact the bank regarding this forgery?

Should I (or POA) instead file a civil/criminal case in court?

How would it impact the loan we have been sanctioned?

Any suggestion would be appreciated.


Asked on 7/21/06, 11:59 pm

3 Answers from Attorneys
BANKIMCHANDRA SHAH ADVOCATE DIGVIJAYA CONSULTANCY SERVICES

Re: loan agreement forgery

You need to give notice to the bank without any delay and approach an advocate

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Answered on 7/22/06, 8:29 pm
Nand Kishore NK Associates

Re: loan agreement forgery

In my view you must first take up the issue with the bank and await their response. if the bank fails to respond then you may file criminal case/ civil case before the consumer fourm for deficiency of service. You may also lodge a complaint with the Reserve Bank of India against the Bank.

regards

Nand Kishore, Advocate

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Answered on 7/22/06, 12:56 am
AKHILESH S DUBEY AKHILESH DUBEY

Re: loan agreement forgery

Please do the following things

1. Inform the bank regarding the discrepancy in writing.

2. If they try to haggle on any point, dont worry about the cancellation of sanction letter and give them a legal notice.

3. If the bank does not rectify or accept the mistake, file a Criminal case through a good lawyer.

4. If they try to stop the loan, file a complaint before the Consumer forum for deficiency in service.

Any of your above acts will not hamper the sanctioning loan & if it does consumer court will look after it.

Regards

Akhilesh S. Dubey

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Answered on 7/23/06, 2:19 pm


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