The District Consumer Disputes Redressal Commission-II ordered the State Bank of India to refund INR 6,628 with 6% interest to Ravi Choudhary, who complained about improper deductions from his savings account. The commission found the bank guilty of "deficiency in service" and directed it to pay INR 10,000 in compensation. Choudhary's home loan application faced delays due to legal verification issues, and despite paying fees in cash, SBI deducted the amount without his consent. The bank claimed the fees were his responsibility, but the commission sided with Choudhary, emphasising consumer rights.
The District Consumer Disputes Redressal Commission-II has ordered the State Bank of India (SBI) to refund INR 6,628, along with 6% interest, to a home loan applicant due to an improper deduction from his savings account. The commission found the bank guilty of "deficiency in service and unfair trade practices" and directed it to pay INR 10,000 in compensation to the complainant for the distress caused.
Ravi Choudhary, a resident of the Panjab University Residential Complex, filed a complaint after SBI wrongfully deducted INR 6,628 from his account. Choudhary explained that he applied for a home loan with SBI, which required him to submit two signed cheques for legal verification and property valuation. However, the application was delayed because the property was located outside Chandigarh.
Choudhary stated that the bank's empanelled advocate refused to conduct the legal verification, leading him to seek assistance from another advocate, S.K. Jain, in Sonepat, where the property was located. After completing the necessary formalities and paying the required fees, his home loan was eventually approved. Despite informing the bank officials that he had already settled the fees in cash, SBI still deducted INR 6,628 from his account. When he contacted the bank, he was told that the amount was paid to the empanelled advocate via a cheque dated January 15, 2019, for legal verification. After sending a legal notice on July 2, 2021, and receiving no corrective action, Choudhary decided to take further action.
Claiming that the bank's actions constituted deficiency in service and unfair trade practices, he approached the commission for a refund of INR 6,628, plus interest and compensation. In its defence, SBI argued that all legal and associated expenses related to the loan were to be borne by the complainant as stated in the loan documents he signed, justifying the deduction from his account. The bank further asserted that it appointed the empanelled advocate and valuer, and that Choudhary was never instructed to arrange for legal verification or valuation reports himself.
This ruling highlights the importance of accountability and transparency in banking practices, ensuring consumer protection against unfair treatment.
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