Page 7 - Banking Finance December 2020

BANK UPDATE

The car insurance offered through by Libra Realtors Pvt Ltd, Deewan Re- Banks cannot deny copies
Airtel Payments Bank also compen- altors Pvt Ltd, Rakesh Kumar
sates for injury or damage to another Wadhawan, Romy Mehra, Libra Hotels of account statements to
person or property caused due to a car Pvt Ltd and its directors," the agency the customer, says DRT
accident. The insurance comes with a said in a statement. The Debt Recovery Tribunal (DRT) in
personal accident cover for the policy-
It said the "market value" of these Chennai has pronounced two major
holder. In the event of an accident
three properties is about Rs 100 crore. orders. One, banks cannot deny the
leading to permanent disablement or copies of account statements to cus-
loss of life, the policy ensures financial tomers. Two, in an auction deal, the
protection for the family. The agency said its probe found that authorised officer has no power to ex-
"proceeds of crime totalling Rs 247
"Motor insurance being mandatory in tend timeline for payments by the pur-
the country constitutes an important crore were obtained fraudulently by chaser.
requirement for millions of car users. Libra Realtors Pvt Ltd, Deewan Real- NV Badarinath, DRT's Presiding Officer,
We are delighted to partner with tors Pvt from PMC Bank in the guise of pronounced in its order dated Septem-
Bharti AXA General Insurance to offer loans". ber 14 that banks cannot deny furnish-
this comprehensive car insurance," said "These loans are part of the Rs 6,117 ing copies of accounts statements to
Ganesh Ananthanarayanan, COO, crores owed by HDIL group of compa- customers.
Airtel Payments Bank. nies to the PMC Bank," the ED
claimed. The order was pronounced onaplea
Bharti AXA General Insurance Manag- filed by MSME borrowers for furnish-
ing Director and CEO, Sanjeev The ED had filed a PMLA case to probe ing statements from an SME branch of
Srinivasan, said: "As part of our part- the alleged loan fraud in the Punjab State Bank of India in Chennai.
nership with Airtel Payments Bank and and Maharashtra Co-operative (PMC)
strong synergies of customer-centric- Bank in October last year against Hous- The order highlighted that every bank
ity, we are offering innovative motor ing Development Infrastructure Ltd customer is entitled to have copies of
insurance products to its customers (HDIL), its promoters Rakesh Kumar his/her statement of account(s) from
through a seamless journey from the Wadhawan, his son Sarang his banker, and the bank is under con-
purchase to the claim process. The Wadhawan, its former chairman tractual obligation to furnish them to
strategic alliance will also help us Waryam Singh and ex-managing direc- its customers.
reach out to the growing customer tor Joy Thomas. Banks may charge for the copies, but
base of the bank and secure them." The Wadhawan father and son were cannot deny customers the right to
also arrested by the ED last year in this have a copy of the statement of ac-
PMC Bank fraud case: ED case and they are in judicial custody at count by virtue of the contract of lend-
attaches hotels worth Rs. present. ing entered between the bank and the
customer.
100 crore in Delhi
SBI Card launches new This right cannot be denied to the bor-
The Enforcement Directorate (ED) has rower, even in cases where the bor-
attached three hotels worth around Rs credit cards along with rower has discharged the debt or de-
100 crore in Delhi in connection with Paytm faulted in discharging the debt due to
its money laundering probe in the PMC the bank, it pointed out.
Bank fraud case, the central agency SBI Cards and Payment Services (SBI
said. Card) said it has launched credit cards "Needless to say that transparency
in partnership with Paytm. Available in and accuracy in maintaining the ac-
The three hotels have been identified two variants, Paytm SBI Card and counts of its customers is the funda-
by the agency as the Fab Hotels group Paytm SBI Card SELECT, the product mental duty of any bank. Breach of this
and are located in Kailash Colony, East has been launched on the Visa plat- 'duty' would result in breach of 'trust'
of Kailash and Kalkaji areas of the na- form. The objective of this partnership reposed in the bank. Insofar as the
tional capital. is to bring 'new to credit' users into the present case is concerned, the direc-

"The attached three hotels are owned formal economy. tion supra, to the respondent bank, is

BANKING FINANCE | DECEMBER | 2020 | 7