1 Rs Loan Default, Chennai Bank Refuses To Return Customer’s 138 grams of Gold Jewels.

The customer “C Kumar” an account holder of the Pallavaram branch of Kancheepuram Central Cooperative Bank had been running from pillar to post for the past five years to get back the jewels worth around Rs. 3.50 lakh.

A co-operative bank here has allegedly refused to return 138 grams of gold jewels, claiming a default of Re 1 in repayment

of a loan pledged for the loan which made customer to move the Madras High Court for relief.

C Kumar said he had taken a loan of Rs. 1.23 lakh from the bank by pledging 131 grams of gold jewellery on April 6, 2010.
And in between, he took two fresh loans totalling Rs. 1.65 lakh by pledging a total of 138 grams of gold.

He closed the first loan by settling the amount along with interest on March 28,2011 and also repaid the two other loans shortly thereafter, but the bank refused to return the jewels saying there was a balance of Re 1 in each of the loans.

Petitioners counsel M Sathyan said even after repeated requests by C Kumar, the bank refused to release the jewellery or accept payment of pending Re 1 for each account.

The petitioner submitted that he nurtured a doubt with regard to the safety of his jewels