Daijiworld Media Network – Mangalore (SP)

Mangalore, Feb 19:  The arrest of Prashanth Shetty, one of the associates of the underworld don, Ravi Poojary, and a resident of Ambalpady in Udupi, for his role in trying to extort money from a businessman in the city and threatening him to finish off in case failure to pay up, by the district crime intelligence bureau seems to have opened a can of worms. The policemen have found out that Shetty has been working for ICICI Bank and two nationalized banks as a recovery agent.

While the cases of persons with criminal records having been hired as recovery and seizure agents by the banks, particularly private ones, have also emerged in the past, the fact that banks in Karnataka Coast, which are always thought to be a little diligent and careful in handling things, have erred, has surprised many. Before entrusting a person with any task on behalf of the banks, the banks are expected to verify his antecedents, standing, credibility etc., to ensure that his hiring does not tarnish the bank’s reputation, as he would be acting as an agent of the banks concerned.

In the past, complaints of the seizure agents taking possession of vehicles even after installments were paid, using of abusive and threatening language over phone etc., have been reported from the twin-districts. It may be recalled that in one case, a tussle between the seizure agents and the private financiers who had hired them, had culminated in murder.

At the same time, the head offices of the banks breathe down the necks of their branches constantly, egging them to improve loan recovery performance, because of the stringent norms enforced by the Reserve Bank of India regarding non-performing assets.  At the same time, the banks seem to have found that soft-spoken gentlemen can never make good recovery agents. It is but natural for them to look for ruffians who look tough and talk tough, and who have the capacity to intimidate the defaulters and insult them openly, in a bid to make them cough up the dues.

Western range inspector general of police, Gopal B Hosur, who also happens to be the city commissioner, is determined to take positive steps to stop the banks from providing an avenue of earnings for those who are criminals. He contemplates serving of notices to the erring banks, seeking their reply as to why action should not be initiated against them for hiring people with criminal backgrounds. He also plans to hold a meeting with the bank officials to educate them about the seriousness of the issue.

It is learnt that Prashanth Shetty had a team of three people under him, to seize the vehicles and recover the loans, as and when the banks asked him to do so.

On the other hand, the policemen feel disheartened at the fact that giving new telephone connections without conducting proper verification, has enabled criminals to function clandestinely, as found by them in the past. Superintendent of police, Dr A Subrhamanyeshwar Rao, confesses that the attempts of the policemen to book companies selling SIMs without proper documentation or verification under different sections of the Indian Penal Code relating to criminal conspiracy, have not found favour from the courts. “Unless criminal intent is proved, which is very difficult to do, the courts grant bail to such persons, as the courts normally take the stand that the faults are procedural lapses at best,” he says. The companies can be booked, if Telecom Regulatory Authority of India takes initiatives to bring ammendments and makes issuing connections without following proper procedures, a punishable offence, he feels.