RESERVE BANK OF INDIA Vs. B.S. RAWAT

JUDGEMENT

(1.) CM No.2871-72/2015

(2.) He became heavily indebted in the year 1999. Without informing the competent authority he took loans from all and sundry such as Jwala Cooperative Urban Thrift and Credit Society, Nationalized Bank Employees (SC) Co-operative Thrift and Credit Society, Nationalized Bank Cooperative Credit and Thrift Society, Nagrik Sehkari Bank Ltd., Bank of Maharashtra and State Bank of India. He even forged the signatures of the competent authority on certificates and submitted the same when he took loans, and relevant would it be to note that the certificates certified that Sh.B.S.Rawat had sufficient means to repay the loan. It is apparent that it became B.S.Rawat's compulsion to forge the certificates because had he taken permission before availing the loan or gave intimation of having obtained the loan, he could not have obtained the loans from more than ten bodies (which he did) inasmuch as his income would not have been sufficient for him to repay the loans. The regulations framed by Reserve Bank of India required B.S.Rawat to inform the department as and when he took the loan and the obvious purpose was that he should not indebt himself to such an extent that he could not meet his and his family daily needs, because if he reached such a financial strangulation he would obviously indulge in malpractices.

(3.) The bubble had to burst one day. Indeed it did when B.S.Rawat started defaulting in repayment of the loans and the principal(s) wrote to RBI that from his salary monthly instalments payable to the principal(s) be deducted and paid over to the principal(s).