Hazaribagh incident | RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties

Thermodynamics · 27th September 2022, 10:04

The RBI last week has banned Mahindra Finance (MMFS) from carrying out any recovery or repossession activity through third party. (Source)

This is in response to the killing of a farmer’s daughter Monika Kumari who was mowed down twice by the company’s recovery agents on September 15 as she tried to stop them from seizing her father’s tractor. Monika, 22, was two months pregnant. She died the same day.

It was reported that the recovery agent mowed her twice only to ensure that she is dead. Incident happened on a broad day light for a mere 10000 rupees disagreement. More details here.

GTO · 27th September 2022, 12:29

An extremely tragic incident! Half of these 3rd-party recovery agents are wannabe thugs. They also have very aggressive targets which adds to the pressure.

When your own employees are in charge of recovery & repossession, you are directly responsible. Plus, Mahindra would have better hiring practices (including background checks) than a thug-owned 3rd-party agency.

That being said, from the finance company's point-of-view, loan recovery / asset repossession through courts is a long, arduous, expensive process which can take years. There has to be a superior solution that makes things better for both, the borrower & the lender.

shancz · 27th September 2022, 17:59

While the action on Mahindra Finance was needed, they should also ensure that all the goons who called themselves recovery agents on that day face the harshest punishment along with the third party who hired and nurtured them. This wouldn't have been their first time intimidating someone.

A message has to be sent and a strong one at that.

GrammarNazi · 27th September 2022, 21:48

Tragic tragic tragic beyond words.

Loan recovery agents must be some sort of animals to do such a thing. I presume they must usually be violent goons itself.

Hope someone with a conscience in the Govt reconsiders holding large loan fraudsters to account. Where are the news channels & the fake activists with their candlelight brigade ?

What is the use of amendments in law & jurisprudence, when the systemic flaws are SO catastrophically bad ? Human life truly has no value in India.

ronford · 27th September 2022, 21:57

Just for 10000? Nothing is being done on people who take thousands of crores of loans and flee the country.

Utter disgrace this is. Sad to see a young life lost!

27th September 2022, 10:04	#1
Thermodynamics BHPian Join Date: Aug 2017 Location: Bengaluru Posts: 832 Thanked: 4,131 Times	Hazaribagh incident \| RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties The RBI last week has banned Mahindra Finance (MMFS) from carrying out any recovery or repossession activity through third party. (Source) This is in response to the killing of a farmer’s daughter Monika Kumari who was mowed down twice by the company’s recovery agents on September 15 as she tried to stop them from seizing her father’s tractor. Monika, 22, was two months pregnant. She died the same day. It was reported that the recovery agent mowed her twice only to ensure that she is dead. Incident happened on a broad day light for a mere 10000 rupees disagreement. More details here.
	(13) Thanks

27th September 2022, 12:29	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,512 Thanked: 300,694 Times View My Garage	Re: Hazaribagh incident \| RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties An extremely tragic incident! Half of these 3rd-party recovery agents are wannabe thugs. They also have very aggressive targets which adds to the pressure. When your own employees are in charge of recovery & repossession, you are directly responsible. Plus, Mahindra would have better hiring practices (including background checks) than a thug-owned 3rd-party agency. That being said, from the finance company's point-of-view, loan recovery / asset repossession through courts is a long, arduous, expensive process which can take years. There has to be a superior solution that makes things better for both, the borrower & the lender.
	(12) Thanks

27th September 2022, 17:59	#3
shancz Senior - BHPian Join Date: Oct 2020 Location: Ranchi Posts: 1,943 Thanked: 5,322 Times	Re: Hazaribagh incident \| RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties While the action on Mahindra Finance was needed, they should also ensure that all the goons who called themselves recovery agents on that day face the harshest punishment along with the third party who hired and nurtured them. This wouldn't have been their first time intimidating someone. A message has to be sent and a strong one at that.
	(9) Thanks

27th September 2022, 21:48	#4
GrammarNazi Senior - BHPian Join Date: Apr 2013 Location: Bangalore Posts: 1,419 Thanked: 3,490 Times	Re: Hazaribagh incident \| RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties Tragic tragic tragic beyond words. Loan recovery agents must be some sort of animals to do such a thing. I presume they must usually be violent goons itself. Hope someone with a conscience in the Govt reconsiders holding large loan fraudsters to account. Where are the news channels & the fake activists with their candlelight brigade ? What is the use of amendments in law & jurisprudence, when the systemic flaws are SO catastrophically bad ? Human life truly has no value in India.
	(1) Thanks

27th September 2022, 21:57	#5
ronford BHPian Join Date: Jul 2021 Location: Pune Posts: 75 Thanked: 121 Times	Re: Hazaribagh incident \| RBI bans Mahindra Finance (MMFS) from recovery through 3rd-parties Just for 10000? Nothing is being done on people who take thousands of crores of loans and flee the country. Utter disgrace this is. Sad to see a young life lost!
	(1) Thanks