Supreme Court Orders Action Against Rogue Recovery Agents

The Supreme Court has labeled a bank's recovery agent firm as 'goons' for failing to return a seized vehicle despite a loan settlement. The court ordered the West Bengal Police to file charges within two months and mandated compensation to the loanee. The vehicle was returned damaged.

In a scathing indictment, the Supreme Court has described a bank's recovery agent firm as a 'group of goons' for failing to return a vehicle seized from a man despite a one-time settlement of the loan amount. The court directed the West Bengal Police to file a charge sheet against the company within two months.

A bench of Justices Surya Kant and Ujjal Bhuyan ordered compensation for Debasish Bosu Roy Chowdhury, who had taken a Rs 15.15 lakh loan to purchase a bus. The Bank of India was instructed to recover the compensation amount paid to Chowdhury from the recovery agent firm.

The bench observed that the recovery agent used muscle power to harass borrowers and noted that an FIR was lodged against M/s City Investigation and Detective for returning the vehicle in a damaged condition. The court directed swift investigation and charge-sheet filing, determining that the trial court would proceed in accordance with the law thereafter.