Court summons Indian Bank chief on NRI complaint.
Bank refused to repay two NRIs fixed deposits worth Rs.720 million

New Delhi, Feb 21, 2005

A Delhi court has summoned Indian Bank chairman B.N. Rao and four chief managers on a complaint that the bank refused to repay two non-resident external (NRE) fixed deposits worth Rs.720 million ($16 million).

The accused - Delhi circle general manager S.K. Virmani, ARM branch chief manager Y.P. Kohli and two other chief managers along with chairman Rao - have been summoned Aug 5.

Metropolitan magistrate S.K. Sharma said: "In view of the statement of the non-resident Indian (NRI) complainant and the documents placed on record, there is sufficient material for summoning them."

Complainant Mohan Murti Shandilya, an NRI in Russia, through his counsel Karan Singh, said the bank had approached him for NRE fixed deposits of Rs.55 million ($1 million) and Rs.33 million on a re-investment basis for a five-year term but failed to pay on maturity.

Singh submitted that the Reserve Bank of India had directed the Indian Bank in 1997 to pay the complainant but the order was disobeyed. IANS

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