Kotak Mahindra Bank has been ordered to pay a fine of ₹20,00,000 by the Hon’ble Chief Metropolitan Magistrate Court, Egmore, Chennai. The fine, imposed under the Indian Penal Code and the Code of Criminal Procedure, relates to a complaint filed by a customer concerning alleged excess loan repayment charges and delays in refunds after loan foreclosure in 2007. The Bank has appealed the order and believes it has strong grounds for its case.
Court Imposes ₹20 Lakh Fine on Kotak Mahindra Bank
Kotak Mahindra Bank has received an order dated April 9, 2025, from the Hon’ble Chief Metropolitan Magistrate Court, Egmore, Chennai, mandating a fine of ₹20,00,000. This penalty has been levied under Sections 409 and 477(A) of the Indian Penal Code (now Bharatiya Nyaya Sanhita, 2023) and Section 248(2) of the Code of Criminal Procedure, 1974 (now Bharatiya Nagarik Suraksha Sanhita, 2023).
Customer Dispute Leading to Fine
The matter originated from a complaint filed by Mr. R. Selvaraj, a customer of the bank. The complaint pertained to allegations of excess amounts collected towards loan repayment, delayed refunds following the foreclosure of a loan account in 2007, and related issues concerning the Statement of Account and Termination of Account Statement.
Bank’s Response and Appeal
Kotak Mahindra Bank has stated that it has preferred an appeal against the aforesaid order and is confident in its grounds to support its position. The bank clarifies that the financial impact of this order is confined to the amount of the fine.
Additionally, the bank noted that the disclosure of this order, as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was not filed earlier because the matter was under dispute and sub-judice. The disclosure is now being made following a communication from a regulatory authority.
Source: BSE
