HC rebukes SBI for denying NOC to farmer over 31 paise

On Wednesday, the Gujarat High Court rebuked the State Bank of India for withholding a farmer’s no-dues certificate for a balance of 31 paise. After repaying a crop loan, the farmer needed the certificate to complete a land deal.

The bank informed the court that the bank’s charge on the land parcel had not been erased because the farmer owed 31 paise after the loan was repaid. “This is too much,” Justice Bhargav Karia said, adding that not giving a no-dues certificate for such a small amount is “nothing but harassment.”

“Exceptional at 31 pence? Anything less than 50 paise is to be ignored, don’t you know? “According to the judge. Justice Karia, enraged, ordered the bank to provide an affidavit on the matter and rescheduled the hearing for May 2.

In this instance, Rakesh Verma and Manoj Verma had purchased a plot of land from Shamjibhai Pashabhai and his family in Khoraj village, on the outskirts of Ahmedabad. Pashabhai’s family had previously obtained a crop loan from SBI. Pashabhai’s family sold the land before the loan was repaid. The bank placed a charge on the land due to the outstanding amount, and the new owners’ names could not be entered into the revenue records. The buyers offered to pay the full amount in order to obtain the certificate.

The purchasers approached the HC in 2020 since the process had not progressed. The loan was repaid while the petition was pending. However, the bank refused to issue a no-dues certificate, preventing the land from being transferred to the buyers. The court ruled on Wednesday that after the loan is paid off, it will direct the bank to provide the certificate. The bank then informed the court of the outstanding 31-paise balance. This infuriated the judge, who claimed that despite being a nationalized bank, SBI continues to harass people. “It’s a rule that anything under 50 paise isn’t.

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