The Delhi High Court has come down heavily on Punjab National Bank for its “arm twisting” tactics of not releasing Rs 1,000 crore loan-securities to real estate major DLF Ltd for alleged default in paying pre- payment charges of Rs 20 crore.
While directing the bank to release the securities, the court also quashed the pre-payment demand. It also slapped a cost of Rs 20,000 on the bank for indulging in such activity.
“The attempt of the bank in not releasing securities worth Rs 1,000 crore while its claim against DLF is of Rs 20 crore only, is nothing but an arm twisting practice adopted by loan sharks to compel it to give in to the demand for pre-payment charges,” Justice Rajiv Sahai Endlaw said.
