Background
In a landmark judgment, the Chief Metropolitan Magistrate Court in Egmore, Chennai, found Kotak Mahindra Bank guilty of perjury and imposed a fine of ₹1.5 lakh on the institution. Additionally, the bank’s legal manager, S. Karthikeyan, was sentenced to three months of simple imprisonment and fined ₹10,000 for submitting false evidence in court.
Case Details
The case originated from a complaint by R. Selvaraj, who had availed a loan of ₹1.5 crore from Kotak Mahindra Bank. Upon deciding to close the loan, Selvaraj was informed that he needed to pay ₹1.7 crore, an amount higher than anticipated. When he requested a detailed account statement, the bank refused, prompting him to approach the Banking Ombudsman, who dismissed his complaint. Subsequently, Selvaraj filed a petition in the Madras High Court in 2012.
During the proceedings, the bank, through its legal manager, submitted an affidavit claiming that no excess amount was collected from Selvaraj. However, it was later revealed that the bank had indeed collected an excess amount of ₹28,26,294 and had refunded ₹14,30,510 to Selvaraj’s account. This contradiction led Selvaraj to file a complaint alleging that the bank had provided false evidence in court.
Legal Findings
The court found both Kotak Mahindra Bank and its legal manager guilty under Sections 193 (false evidence) and 209 (false claim) of the Indian Penal Code. The judge emphasized that submitting false affidavits undermines the integrity of the judicial process and cannot be taken lightly.
Implications
This judgment serves as a stern warning to financial institutions and their representatives about the consequences of misleading the court. It underscores the judiciary’s commitment to upholding the sanctity of legal proceedings and ensuring accountability.
