Supreme Court Orders RBI to Control Forcible Vehicle Seizures by Lenders
The Supreme Court has issued directions to the Reserve Bank of India to curb forcible seizures of vehicles by finance companies. The order came in a judgment against Cholamandalam Investment and Finance Company Ltd, which was directed to close the loan accounts of a truck owner and refund ₹4.5 lakh realised from the sale of his vehicle.
The refund will carry six per cent annual interest. The judgment represents a significant move by the apex court to protect borrowers from aggressive debt recovery practices by financial institutions.
