Belonging to an investor five entities has filed a lawsuit against ICICI Bank UK in Belgium, where the bank has a branch, claiming compensation in excess of $130 million, lawyers close to the development said. The entities have accused the bank of mis-selling financial products that led to $32 million loss to the group. The compensation claim is for the loss incurred, mis-selling and consequential damages.

Even after all this, the bank denies any wrongdoings. ICICI Bank UK is one of the three overseas subsidiaries of India’s largest private sector lender. The bank has two other two subsidiaries in Canada and Russia. ICICI Bank UK currently has nine branches in UK, and one each in Belgium and Germany.

“ICICI Bank has lending relationships with the customer. After the customer defaulted on its payments, the bank has initiated legal recovery actions against the assets of the customer in order to protect its interests. As a counter, the customer has filed a complaint against the bank for an old facility, which the customer repaid a few years ago. The bank has vigorously denied and rebutted all allegations and claims made by the customer. The matter is sub-judice in a Belgium court,” a spokesperson of ICICI Bank said in an e-mailed response to Business Standard’s query on this subject.

It is learnt that the bank has attached the customer’s assets in Hong Kong after it defaulted on loan repayment.

Source : Business-standard

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