A bank is beholden to return original documents it receives as collateral once a debtor repays a loan in full, a consumer forum here said, rapping the country’s leading nationalised bank and fining it `45,000.
The district redressal forum, South Chennai, noted that State Bank of India had lost the original documents of Lakshminarasimhan Komandur of Saidapet, who had taken and later repaid in full a loan of `24 lakh.
Komandur said he approached SBI’s Adyar branch for a home loan. The bank sanctioned the loan on June 7, 2011, after which he handed over the original documents of property he owned to SBI’s retail assets central processing centre on Anna Salai.
He repaid the monthly installments, he said, and also repaid the entire loan ahead of the due date. The bank then issued an acknowledgement for recovery of the loan on October 12, 2013, but failed to return the original property documents.
After “countless“ representations, Komandur said the bank sent him a communiqué to say it could not trace the documents.
The bank issued a certified copy of original title deed, but “kept silent“ regarding the other documents. It handed over a “meagre“ `5,000 to Komandur as compensation in instead of the documents.
dinathanthi newspaper 19/11/2016 : http://www.dinathanthiepaper.in/firstpage.aspx