Since early May ’09, Mr. Vishwanathan the representative of M/s. Standard Chartered Bank, Ahmedabad had been visiting our office quite frequently with a view to capture good business from us. He had offered us many Bank facilities i.e.L/C, Credit facilitation etc.
Apart from this he also offered us one very lucrative scheme at lower rate of interest; especially for import purpose i.e. BUYER’S CREDIT at only 6% rate of Interest.
In the mean time, he explained about the BUYERS CREDIT FACILITIES that under this scheme, the importer means “We” have to submit the documents for remittance of payment to them against Proforma Invoice for advance payment etc. and their Bank will immediately remit such payment to foreign Exporter on our behalf immediately in Dollar currency through their connected bank in that respective country, as they have made such arrangements / tie-up with foreign Banks, and in turn we shall have to make the payment to their bank after 90 days @ of interest of 6% maximum. Thus the importer means “We” can enjoy credit of 90 days @ lowest rate of interest i.e. 6%.
By virtue of such beneficial scheme, we were enticed to avail such Buyers Credit facility. When we applied for such schemes, they have sanctioned us various Bank Facilities as per their letter ET/FPP/001 dated 17/06, for which they had collected an amount of Rs.172075.00 (One lac seventy two thousand and seventy five rupees only) as a application process fees and they have also demanded to keep LIC policies as collateral security with minimum surrender value of Rs.6.21 lacs, which we have surrendered to them.
We have always informed Mr. Vishwanathan, about our existing practice of making remittance of 25%-30% advance against our Chinese supplier’s Proforma Invoice and he has agreed to manage for the same under BUYERS CREDIT scheme for import loan (90 days) scheme.
He asked us about the volume of such import business the frequency thereof. At this juncture we had very vividly informed him the volume of our import business was within the region of 10/15 lacs per month at that time. He had very categorically informed us repeatedly that the bank would club the small requirements of the various buyers to the tune of US$100000.00 for a single transaction and then would arrange for availing this facility to respective clients in proportion of their requirement each single time.
Now, when the time came to take benefit of our Buyers credit facility, we were completely abashed and astonished while our Mr. M.D. Prajapati had telephonic conversation followed by personal visit with Mr. Ravi & Mr. Omprakashji of Standard Chartered Bank on 26th May at 3.00 p.m. for submitting the documents containing AR-1, Application etc together with a Proforma Invoice of Our (Chinese) Supplier and requested to arrange to remit the 30% amount of US$4977.00 When he flatly refused to do so and informing that it is not possible for their bank to remit such amount either under Buyers Scheme or under import loan saying that the benefit of Buyers Scheme can be availed in the event of making a single transaction of US$ 2.5 lacs and even previous rule for availing this facility was of making a single transaction of US$ 1 lac by a single client.
“You can even judge them by their contradictory statements”
It cannot be ignored to mention that all the above hidden clauses/information they have not given us before making us client whereas they have explained us only after collecting their process charges amount Rs.172075.00 from us. It is undeniable to comment that they (Standard Chartered Bank) were only interested in collecting the process charges and to swindle the clients on one plea or other.
At this phase, we were much embarrassed and left with no any other option but to request them to arrange to refund us the total expenses of Rs.172075.00, which we spent for the application process charges and all our life insurance policies which we have surrendered them as a collateral security may be remitted to us. But, after our vigorous follow ups for the same, they have just neglected our exercises and neither returned the processing fees nor returned our LIC policies till this date.
By the time, we have again tried to call up Mr. Vishwanathan the representative of M/s. Standard Chartered Bank for the matter in question and he agreed to handover the LIC policies to us. When we have deputed our representative to collect the same, again he refused to handover the LIC policies saying that they will send us the same through their legal department as their legal department has received legal notice from our advocate, which they never sent.
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