C Arul Amuthan vs Indian Overseas Bank on 1 September, 2022

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Central Information Commission

C Arul Amuthan vs Indian Overseas Bank on 1 September, 2022

1. The issue under consideration arising out of the second appeal dated 18.08.2020 include non-receipt of the following information sought by the appellant through the RTI application dated 10.01.2020 and first appeal dated 26.02.2020 :-

(i) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA , further under SARFAESI Act 2002,IOB issued l3(2) notice on 10.08.2012 for recovery of Credit facility availed from IOB , through security mortgage / hypothecation kindly provide information during the period ( 07.10.2009 to 10.08.2012 ) any change in the following areas in the PG Dyes & Chem account .

a. Any change in Cash Credit limit during the period (CC limit) Page 1 of 10 b. Any change in Drawing Power limit during the period (DP limit) c. Any change in letter of credit limit during the period (LC limit) d. Any change in hypothecation of stocks (security) during the period e. Any change in mortgage of collaterals (securities) during the period. f. Any change in hypothecated stocks godown addresses during the period. g. Any change in hypothecated stocks godown insurance coverage by IOB, during the period h. Any change in mortgage /hypothecation securities insurance coverage by IOB. during the period i. Any change in Registered office /addresses of PG dyes & Chem during the period.

j Any change of Authorized signatories of PG dyes & Chem during the period. k. Any change in partners and capital amount of PG dyes & Chem during the period

(ii) IOB , Ramalinganager Branch sanctioned PG Dyes & Chem CC A/c No 2658 loan was sanctioned on 07.10.20()9 subsequently account become NPA . During SARFAESI Act 2002 recovery process, ((IOB issued l3(2) notice on l.08.2012 for recovery of Credit facility availed from IOB , through security mortgage hypothecation and further possession notice, sale notice of securities , SARFAESI Act l3(4 )notices, paper e auction etc)) kindly provide copy of the NOTICE OF SALE OF MOVABLE SECURED ASSESTS - issued under rules of the sec"urity interest (enforcement ) Rules 2002 against PG Dyes & Chem . during NPA recover)'process under SARFAESI Act 2002.

(iii) Kindly provide information about insurance coverage ratio by IOB against I hypothecation stocks VS actual CC limit given to the PG Dyes & Chem as per Credit sanction advice limit.

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(iv) IOB , Ramalinganager Branch sanctioned PG Dyes & Chem (CC A/c No 2658) loan on 07.10.2009, as per credit sanction advice terms and conditions insurance covered by IOB against security mortgage/ hypothecation securities of PG Dyes & Chem. kindly provide information purpose of insurance coverage by IOB against security mortgage/ hypothecation securities of PG Dyes & Chem.

(v) IOB , Ramalinganager Branch sanctioned Rs 15,00,000 CC loan to PG Dyes & Chem (CC A/c No 2658) on 07.10.2019, as per credit sanction advice terms and conditions insurance covered by IOB against h5pothecation stocks for Rs 35, 00, 000 of PG Dyes & Chem. kindly provide information purpose of very high insurance coverage of PG dyes & Chem hypothecation stocks by IOB

(vi) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA , During SARFAESI Act 2002 recovery process, {{ IOB issued l3(2) notice on 10.08.2012 for recovery of Credit facility ( Rs 16,61,463. 13- including interest) availed from IOB , through security mortgage / hypothecation with insurance coverage Rs 35,00,000 by IOB )) kindly provide information about the responsibility and accountability of the IOB official about insurance claims from (NPA) PG Dyes & Chem insured, hypothecation stocks after SARFAESI Act 2002 notice for earlier recovery & settlement of PG Dyes & Chem CC account closer.

(vii) lOB, Ramalinganager Branch sanctioned PG Dyes & Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA , During SARFAESI Act 2002 recovery process, {{ IOB issued l3(2) notice on 10.08.2012 for recovery of Credit facility ( Rs 16,61,463. 13- including interest) availed from IOB, through security mortgage / hypothecation with insurance coverage Rs 35,00,000 by IOB l). I under stood from regional office Page 3 of 10 memo No Law//1612019-20 dated 18.10.2019, IOB not taken possession of insured , hypothecated stocks during SARFAESI Act 2002 recovery process. kindly provide information about the responsibility and accountability of the IOB official about failure to take possession of insured, hypothecated stocks of PG Dyes & Chem and failed in earlier recovery & settlement of NPA

(viii) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA , During SARFAESI Act 2002 recovery process, {{ IOB issued l3(2) notice on 10.08.2012 for recovery of Credit facility ( Rs 16,61,463. 13- including interest) availed from IOB , through security mortgage / hypothecation with insurance coverage Rs 35,00,000 by IOB ). I under stood from regional office memo No Law//1612019-20 dated 18.10.2019, 'IOB not done any insurance claims against hypothecated , insured stocks of ( NPA) PG Dyes & Chem from insurance company. For earlier recovery and settlement of dues to the bank .. kindly provide information about the complaint procedure and process against IOB officials about the failure in insurance claims and delayed in earlier recovery and settlement from (NPA) PG Dyes & Chem under SARFAESI Act 2002 recovery process.

(ix) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 , every month monthly inspection charges deducted from PG Dyes & Chem CC account till account become NPA. Kindly provide following information

a) Provide all Copies of the all monthly inspection reports.

b) Purpose of the monthly inspection by IOB , ramalinganagar branch official inspection at PG Dyes & Chem office, Page 4 of 10

x) IOB , Ramalinganager Branch sanctioned PG Dyes & Chem CC Nc No 2658 loan was sanctioned on 07.10.2009 . kindly provide exact outstanding dues amount in PG Dyes & chem. CC account as on

a) 10.08.2012

b) 31.03.2013

c) 31.03.2014

d) 31.03.2015

e) 31.03.2018

xi) IOB , Ramalinganager Branch taken over PG Dyes& Cheam account from CSB, Tiuppur, before sanction of credit sanction advice (CC Arc No 2658) in IOB, mandatorily collected PC Dyes & Chem previous years income tax returns . During every year credit sanction advice renewal of PG Dyes & Chem . mandatory to collect Income Tax returns before renewal in IOB. Kindly provide copies of the Income Tax returns collected by IOB, Ramalinga nager Branch during renewal of the credit sanction advices ( loan was sanctioned on 07.10.2009)

xii) IOB , Ramalinganager Branch sanctioned PG Dyes & Chem CC A1c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA. During Recovery process IOB declared the PG dyes & Chem account as a "Doubtful Asset ". Kindly provide information IOB properly followed (Provisions) procedure and process before declaring PG Dyes & Chem as " Doubtful Assets"

xiii) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA. During SARFAESI Act 2002 Recovery process {{ IOB issued l3(2) notice on 10.08.2012 Page 5 of 10 for recovery of Credit facility ( Rs 16,61,463. 13- including interest) availed from IOB , through mortgage / hypothecation stocks insurance covered for Rs 35,00,000 by IOB )) PG Dyes & Chem insured . hypothecated stocks and collateral values are very very higher value than outstanding dues to the bank.

Kindly provide information about the procedure followed by IOB to sale of PG Dyes & Chem account under SARFAESI Act 2002 to ARC for very low value than outstanding dues to the IOB. xiv) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.20@ subsequently account become NPA. During SARFAESI Act 2002 Recovery process, IOB failed to observe and consider Forced sale values (FSV) of PG Dyes & Chem collaterals and insured hypothecated stocks. Forced sale values of the collaterals more than 3 times higher than outstanding dues to IOB.

xiv) Ramalinganager branch during SARFAESI Act 2002 recovery process purposefully failed to take action against very high forced sale value (FSV) collaterals including insured, hypothecated stocks. Kindly provide information details about the IOB officers failed their responsibility and accountability about early collection of dues from NPA.

xv) IOB , Ramalinganager Branch sanctioned PG Dyes& Chem CC A/c No 2658 loan was sanctioned on 07.10.2009 subsequently account become NPA. During SARFAESI Act 2002 Recovery process , IOB failed to observe and consider Forced sale values(FSv) of PG Dyes & Chem collaterals and insur€d hypothecated stocks. Forced sale values of the collaterals more than 3 times hidrcr than outstanding dues to IOB, Ramalinganager branch. Furrher under SARFAESI Act 2002, IOB sale of PG Dyes & Chem to ARC ( ARCIL) on dated 10.02.2015 {ref Regional ollice memo Law/16/ 2019-2020 dated 18.10.2019 ) the Page 6 of 10 sale value of PG Dyes & Chem to ARC( ARCIL) is very low value than outstanding due amount to IOB. Kindly provide following informations

a) Exact Forced sale value (FSV) of collaterals ( stocks and collaterals separately )

b) As on 10.02.2015 (sale date to ARC) Forced sale value (FSV) of stocks and collaterals.

c) PG dyes & Chem outstanding dues to IOB as 10.02.201 5

d) Sale value PG Dyes & chem. account ARC (ARCIL) as on 10.02.2015

e) Kindly provide agreement number regarding Sale of PG Dyes & chem. account under SARFAESI Act 2002 to ARC (ARCIL) as on 10.02.2015

f) Sale value PG Dyes & chem. account ARC (ARCIL) as on 10.02.2015, IOB received full payment or mode of payment received.

g) Purpose of sale of high Forced sale value of collaterals account (PG Dyes& Chem) to ARC for low value. (create loss to Bank as well as borrower)

h) Kindly provide information about the IOB officials tailed their responsibility and accountability about the collection of dues from collaterals (VERY high FSV) under SARFAESI Act2002 procedures and making loss to the bank by selling high value PG Dyes & Chem account to very low price to ARC.

2. Succinctly facts of the case are that the appellant filed an application dated 10.01.2020 under the Right to Information Act, 2005 (RTI Act) before the Central Public Information Officer (CPIO), Indian Overseas Bank, Coimbatore, seeking aforesaid information. The CPIO vide letter dated 30.01.2020 replied to the appellant. Aggrieved by the same, the appellant filed first appeal dated 26.02.2020 The First Appellate Authority (FAA) vide order dated 03.04.2020 disposed of the first appeal. Aggrieved by that, the appellant filed second appeal dated 18.08.2020 before the Commission which is under consideration.

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3. The appellant has filed the instant appeal dated 18.08.2020 inter alia on the grounds that reply given by the CPIO was not satisfactory. The appellant requested the Commission to direct the CPIO to provide the complete information and take necessary action as per Section 20 (1) of the RTI Act.

4. The CPIO replied vide letter dated 30.01.2020 and the same is reproduced as under :-

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The FAA vide order dated 03.04.2020

5. The appellant remained absent and on behalf of the respondent Shri Manoj Dev Verma, CPIO, Indian Overseas Bank, Coimbatore, attended the hearing through video conference.

5.1. The respondent while defending their case inter alia submitted that it had come into their knowledge that the appellant had passed away few months back. Moreover, they had provided para-wise reply/information to the appellant vide letter dated 30.10.2020. Moreover, PG Dyes & Chem was sold to the Asset Reconstruction Company, therefore, the relevant documents relating to the company were no longer under their custody and was under the custody of the ARC.

6. The Commission after adverting to the facts and circumstances of the case, hearing the respondent and perusal of records, observed that as informed by the respondent, the appellant had demised and no successor had impleaded in the matter. Moreover, appropriate reply having been given by the CPIO on 30.01.2020, there appears to be no public interest in prolonging the matter further. Accordingly, the appeal is dismissed.

Copy of the decision be provided free of cost to the parties.

Sd/-

(Suresh Chandra) (सुसुरेश चं ा) ा Information Commissioner (सूसूचना आयु ) दनांक/Date: 31.08.2022 Authenticated true copy R. Sitarama Murthy (आर. सीताराम मूत ) Dy. Registrar (उप पंजीयक) 011-26181927(०११-२६१८१९२७) Page 9 of 10 Addresses of the parties:

The CPIO Indian Overseas Bank 11/952, Cross Cut Road, Gandhipuram , Coimbatore , Tamil Nadu-641012 First Appellate Authority Indian Overseas Bank 763,New Building Annex, 3rd Floor, Anna Salai, Chennai Pin: 600002, Tamil Nadu Shri C Arul Amuthan, Page 10 of 10

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