Canara Bank issues notices to 4,100 loan defaulters

Canara Bank issues notices to 4,100 loan defaulters

Make optimum use of Lok Adalat, people told

Canara Bank issues notices to 4,100 loan defaulters

Canara Bank, in the district, has issued notices to 4,100 defaulters to clear the cases in the Lok Adalat. It is likley to clear all the cases, said District and Sessions Judge H S Kamala. 

Briefing reporters, before the commencement of Lok Adalat here, on Wednesday, he said the cases are not solved through mediation alone. The adalat gives civil court decree. There will be legal binding for the payment of loan.

“As there has been increase in the number of cases filed in the court, the pressure on the court increases. As a result, the cases are not solved within the time frame. Hence, the Lok Adalat is being organised. This will help to solve the case before it reached the court.”  

People should make optimum use of the adalats. Though in the justice delivery system the Lok Adalat concept was in no way different from the regular courts it had several advantages, he added.

Stating that the complainants need not shell out anything by way of court cost, he said that litigation could be avoided and verdicts would be pronounced on the spot.

Success of adalats

Principal Senior Civil Judge B Jayanth Kumar said that in the first phase, the adalat is held at the district headquarters. Looking at the success of Lok Adalat, the SBI, SBM and Bank of India too has come forward to conduct adalats. Syndicate Bank Lok Adalat will be held on February 6, SBI on February 11 and Indian Bank on February 14.

The Finance Ministry and Reserve Bank of India has directed all the bank heads to conduct Lok Adalat for the recovery of loans. 

Canara Bank Shivamogga Circle DGM H Shivaram said that the Lok Adalat conducted in Shivamogga and Chikkamagaluru district has been a success and the RBI has lauded the effort.

In 2013-14, Rs 140 crore non performing asset (default) loan has been recovered through Lok adalat in 2013-14. The target is Rs 140 crore in 2014-15. Already Rs 120 crore has been recovered.

Concession on interest

As the consumers are given concession on penalty interest, they take keen interest to repay the loan. 

Canara Bank Shivamogga Circle Assistant Chief Manager I C Shetty said that notices have been issued to a total of 17,000 defaulters in Shivamogga and Chikkamagaluru district. This includes 12,900 in Shivamogga. A separate adalat will be organised in Tarikere. Principal District and Sessions Judge H S Kamala inaugurated the adalat.