Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Bad behaviour for the recovery of dues caused one more suicide

Miss Komal Mantri (Chartered Accountant ) (1974 Points)

18 October 2007

I have heard that one more person suicide bcoz of ruthless behaviour of the Recovery agent of the bank....

Dont u all think that there shld be some law providing code of conduct to the recovery agents and restricting there powers....

Is there any way out to prevent such unforgiving behaviour of the Recovery Agents...

Reply
Follow
Share

8 Replies

Satya Narain Gupta (CA final student) (496 Points)
Replied 18 October 2007

The recovery agents are not embeded the powers but by hook and cook they are collecting the payments due to negligent behaviour of police and judicairy. We have no solution to make accoutable to police and judiciary.

Upgrade to CAclubindia Pro. Subscribe Now!

Prakash Popat (3134 Points)
Replied 19 October 2007

Principles R responsible for the acts of agent as per laws,and such murder or suicide is deemed to be not by Recovery Agents but by Principal Bank/Banker.

Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 19 October 2007

I think bank shld restrict there activities.......they behave as they want.....i feel ultimately both r responsible....
Secondly before appointment of recovery agents bank shld make detail inquiry about them....

Satya Narain Gupta (CA final student) (496 Points)
Replied 19 October 2007

Dear Mr Prakash and Komal both of you are very vigilant of social problem and devoted with huminity also. I am working as accounts officer in BSNL and doing work on RTI. I have registered for final course of CA. If any one to make himself a successful auditor he must work on RTI. This is good enactment specially help ful to us. Please use RTI to solve various social problems as we are not in position to present ourselves in court. If you want to keep in touch for professional upgradation every time I welcome you.

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 19 October 2007

I appreciate the efforts made by Komal for drawing our attention on this problem. Banks (Specially Private sector) give contract for recovering their dues to such persons which have sound & long history of commiting crimes and also the commission of these agents is based on net amount realised by them.So these agents often ignores the guidelines presribed by RBI for them.Code of conduct for such agents should further be strenthened .Besides this such code should be Properly Enforced as such people do not voluntarily abide by these code RBI should make a national database for Recovery agents and black list all such agents who use unlawful means to recover dues on behalf of banks.Besides this their should be provision for fast disposal of cases against such agents and severe punishment should be awarded to them. Banks who gave contract to such agents should also be penalized . Hope RBI will Look into this matter and take strict action

Upgrade to CAclubindia Pro. Subscribe Now!

Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 20 October 2007

Hi Ankit... I really appreciate the ideas produced by you....but i m feeling petty bad that at this stage we cant do anything....we can only propagate the matter.... Hope RBI, SC and other authorities will take appropriate steps.... Thanks alot for providing ur views and spending ur valuable time for Humanity

Prakash Popat (3134 Points)
Replied 23 October 2007

Foreign Banks are not behind in scoring on this grounds on accounts of sleeping judiciary.

Satya Narain Gupta (CA final student) (496 Points)
Replied 23 October 2007

Mr. Prakash, I think every private player is using the negligency of regulatory or judiciary body. As per my views every organisation must disclose every policy of organisation which is binding to every organisation under so many enactment of our Govt.