India | Updated Oct 06, 2007 at 02:32am IST

Woman dies of shock as bank penalises loan defaultor

Karn Kowshik, CNN-IBN

Mumbai: When 60-year-old Suhasini Mangaokar agreed to become a guarantor for a neighbour's loan, she had no idea what was in store for her.

The loan-borrower, Bhupendra Mungekar, didn't pay back a single rupee of his Rs 30,000 loan from the Sridhar Co-operative Credit Society in Dahisar.

Six months ago, the bank deducted the entire money from the fixed deposits Suhasini had in the bank. Her son, Prashant Mangaokar now says that it was the shock that killed her.

"When she came home from the bank she was upset. I don't know what they said to her, but she was dead within 15 minutes," says a distraught Prashant.

Mangaokar alleges that there was no provision to deduct the money from the deposits which resulted in his mother's death. He then approached the local police station who gave him the runaround.

"I went to the local police station. They would keep asking me to come the next day and I continued in that vein for some time," recalls Prashant.

The Registrar of Co-operative Societies too initially ignored Mangaokar's complaint, but had to come up with information under pressure from an RTI application.

The RTI bore fruit with the Registrar instructing the Co-operative Society to return the money.

However, the society has not responded so far, preferring to shut its doors and claiming its officials are out of town.

Meanwhile, the police has now swung in action and registered a case of death by negligence against the bank.

After recent cases of harassment by banks hit the news, the bank alleges that Prashant Mangaonkar is trying to blackmail them — a charge that Prashant denies. In fact, he says that he is willing to do anything to get justice.

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