Stanchart asked to compensate clients

For sending 'thugs' to recover non-existent dues

The State Consumer Disputes Redressal Commission, Chennai has asked Standard Chartered Bank to pay two of its customers Rs 20 lakh as compensation for a mistake made by the bank that resulted in its "hierlings and thugs" threatening the customers.

The Commission (a quasi-judicial body set up under the Consumer Protection Act) issued the order on April 20, 2005. The order asked Standard Chartered to pay the compensation in two months.

In addition to the compensation, the bank was also asked to pay another Rs 5,000 towards expenses.

The incident in question took place in 1996. A Ranganathan, a Standard Chartered customer, held a non resident external account, non resident ordinary account (NRO), foreign currency non resident deposits and non resident non repatriable deposits.

Ranganathan had given the bank standing instructions to pay his wife's credit card dues from his NRO account.

Subsequently, Ranganathan's wife received a telegram from the bank which said that a cheque for Rs 27,022.35 had been returned on account of insufficient funds.

A cheque had not been issued by Ranganathan, and the telegram was followed by "thugs" who called on the card holder and "made threats to her."

The order said that Standard Chartered indicated that the incident took place because of a mistake in their computer system.

The Commission order said that it was being issued ex parte because Standard Chartered had not sent the relevant representative for the hearing.