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ICICI Bank held liable for not returning original property documents to customer


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The III Additional Bangalore Urban District Consumer Disputes Redressal Commission, Bengaluru bench, consisting of Shivarama K (President), Chandrashekar S Noola (Member), and Rekha Sayannavar (Member), recently held ICICI Bank liable for deficiency in services. The bank failed to return the original documents to the complainant within one month of loan disbursement.

Background of the Case

The complainant and his wife obtained a home loan from ICICI Bank, facilitated by Andromeda Sales and Distribution Private Limited. As part of the loan process, a general power of attorney (GPA) was executed by the complainant and his wife in favor of the complainant’s mother, granting her authority over property transactions on their behalf while they resided in the UK. ICICI Bank offered a substantial home loan of Rs. 1,60,00,000/- to the complainant, and a home loan agreement was signed by the complainant, his wife, and his mother, along with the execution of GPA documents. The loan amount of Rs. 1,40,00,000/- was disbursed with 6.8% interest per annum, and property registration occurred on 08/10/2021.

Issues with Document Return

During the property sale registration, ICICI Bank submitted the GPA along with other original documents without providing a comprehensive list. Despite requests from the complainant, ICICI Bank postponed furnishing the list until one month after the loan disbursement. As circumstances changed, the complainant decided to sell the property, leading to a sale agreement in July 2022. However, despite persistent efforts, the complainant failed to obtain the necessary documents from ICICI Bank, complicating the transaction, especially given the complainant’s status as an NRI residing in the UK and his mother’s health concerns.

ICICI Bank’s Response

ICICI Bank argued that the complainant was aware that the GPA would be treated as an internal document, and the demand for physical presence during the transaction originated from IDBI Bank (the property purchaser) and not ICICI Bank. Furthermore, ICICI Bank refuted claims of delayed document provision, citing correspondence indicating timely responses and alleging concealment of facts by the complainant, including a loan account closure and refund of excess amounts.

Decision of the District Commission

The District Commission noted that ICICI Bank failed to produce evidence supporting the timely return of documents, as per their obligations within one month of loan disbursement. This failure to provide a complete document list upon request resulted in inconvenience and delayed the property sale. Therefore, the District Commission held ICICI Bank liable for deficiency in services.

Compensation and Costs

As a result of the ruling, the District Commission directed ICICI Bank to pay Rs. 50,000/- to the complainant for the deficiency in service, inconvenience, and mental agony endured. Additionally, ICICI Bank was directed to pay Rs. 10,000/- for the litigation costs incurred by the complainant.

2 Comments

  1. Bankers are supposed to aid and help common customers. Instead they by this attitude they unnecessarily create problems. Rules and regulations are created by man to facilitate customers and to protect them and not to harrass them. Every rule has an exception and every difficult situation has a solution. Bankers need to be human. They need to have the “sevak” philosophy from PM!

  2. M Narayanan is right in saying that Banks should not unnecessarily create problems to customers instead they need to have the sevak attitude towards customers.

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