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HC quashes minorities commission’s proceedings against HDFC Bank officials

Sep 25, 2024 08:32 AM IST

The Bombay High Court dismissed proceedings by the Maharashtra Minorities Commission against HDFC Bank, deeming them outside its jurisdiction.

MUMBAI: The Bombay high court last week struck down proceedings initiated by the Maharashtra State Minorities Commission against some senior executives of the HDFC Bank, following a complaint lodged by Rajesh Mehta, a trustee of Lilavati Kirtilal Mehta Medical Trust, alleging that severe harassment and mental torture by the bank management and recovery department led to the death of his father Kishor Mehta, an eminent member of the Jain community.

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HT Image

A division bench of justice Bharati Dangre and justice Manjusha Deshpande struck down the proceedings on September 18, holding that the Minorites Commission had no jurisdiction to proceed on the complaint and summon the bank officials.

“The issuance of notice to the Petitioners is beyond the jurisdiction of the Minorities Commission and, hence same is quashed and set aside,” the bench said and restrained it from proceeding any further on the complaint.

The bank approached the high court after the Minorities Commission on July 23 issued summons to its MD, CEO, group general counsel, head of special operations department and one employee, ordering them to attend a hearing on August 1.

The complainant had alleged before the commission that the senior management of the bank and its recovery department harassed and mentally tortured him and his father at the behest of their rivals in the medical trust.

The bank questioned the proceedings, contending that the complaint was lodged only to evade the due process of law for recovery of loans, and the complaint was wholly untenable before the Minorities Commission.

The commission cited statutory duty as the reason for issuing a notice to the bank officials, claiming that it had only called upon the petitioners to remain present, produce documents, as they may deem fit in response to the allegations made in the complaint, and it had not indulged in any adjudication.

The judges, however, said, “We are really doubtful, whether the legislature intended to cover an individual complaint like the one, before us, which is nothing but an attempt to short-circuit the procedure adopted by HDFC Bank,” noting that Mehta had started filing complaints against the bank only after adverse orders were passed by the Debt Recovery Tribunal against him.

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