Supreme Court Questions Indian Bank Over Unpaid Surplus From 35-Year-Old Loan Case
· India · Hindustan Times, Indian Express
The Supreme Court has acquitted V Balakrishnan, a former branch manager at Indian Bank’s Anna Nagar branch, of conspiracy charges related to a 1991-92 loan case. While clearing the manager, the bench of justices JB Pardiwala and K Vinod Chandran shifted focus to the bank’s failure to return over ₹2.7 crore in excess auction proceeds to the borrowers' legal heirs. The court noted that the bank recovered significantly more than the outstanding loan amounts, with one property fetching ₹1.175 crore against dues of ₹16.42 lakh. Justices expressed surprise that no effort was made to identify the heirs and disburse the surplus funds. The bank has been ordered to submit a detailed report on the loan accounts and produce the relevant title deeds by October 5.
Why it matters
The Supreme Court's intervention forces Indian Bank to account for surplus auction funds, potentially setting a precedent for how financial institutions handle excess proceeds from recovered mortgaged assets. This case highlights the legal accountability of banks in protecting the rights of borrowers' heirs in long-standing loan disputes.
Read the original report — Hindustan Times
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