Kotak Mahindra Bank Convicted: A Chennai court has fined Kotak Mahindra Bank Rs 20 lakh and convicted it for criminal breach of trust after it collected excess money from a customer and diverted it into its profit account without informing him.
The issue began in 2012 when Mr Primson asked the bank to provide a detailed statement for a loan settlement of Rs 1.7 crore, which he had paid in 2007. The bank refused to give the details. In its response to the court, the bank claimed no extra amount was taken. However, further investigation showed that Rs 14.3 lakh was collected more than the actual due amount.
Surprisingly, the bank later transferred the extra money to another account belonging to Mr Primson without telling him. This raised suspicion, and a perjury case was filed. The court had earlier fined the bank Rs 1.5 lakh for this and sentenced S Karthikeyan, the bank’s legal head, to three months in jail.
Police investigations revealed a broader scam in which the bank maintained two sets of records: one for the customer and another internal copy. The internal records showed the correct dues and extra amounts, which were later added to the bank’s profits without informing customers.
The Central Crime Branch found that many customers were similarly affected. Mr Primson has now received a compensation of Rs 10 lakh. He advised others to always demand a detailed break-up when settling a loan to avoid such frauds.
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