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Bank fined for hiring goons

New Delhi, Feb. 23 (PTI): The Delhi consumer commission has imposed a penalty of Rs 10 lakh on Standard Chartered Bank for harassing advocate Vibhu Bhakru with the help of “musclemen” to recover alleged credit card dues.

“No civilised society can brook such kind of methodology for recovery of any dues that are recoverable through civil legal remedy,” said Justice J.D. Kapoor, who heads the commission.

The commission warned financial institutions that officers may be jailed, in accordance with the consumer protection act, if they employ “musclemen, goons and recovery agents” to make defaulting debtors pay up. It directed the bank to pay Bhakru Rs 20,000 in compensation. The Rs 10-lakh fine would have to be deposited in the consumer welfare fund.

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