Bisikesan Pradhan filed a consumer case on 07 Jul 2017 against Asst. General Manager,SBI in the Cuttak Consumer Court. The case no is CC/118/2016 and the judgment uploaded on 24 Aug 2017.
Orissa
Cuttak
CC/118/2016
Bisikesan Pradhan - Complainant(s)
Versus
Asst. General Manager,SBI - Opp.Party(s)
G N Rout
07 Jul 2017
ORDER
IN THE COURT OF THE DIST. CONSUMER DISPUTES REDRESSAL FORUM,CUTTACK.
C.C No.118/2016
Sri Bisikesan Pradhan,
At:Plot No.1D/329,Sector-10,C.D.A,
PO/P.S: Markat Nagar,Dist:Cuttack. … Complainant.
Vrs.
Asst. General Manager,
SBI, RACPC,2nd floor ,SBI city Branch
College Square, Cuttack-753003. … Opp. Party.
Present: Sri Dhruba Charan Barik,President.
Sri Bichitra Nanda Tripathy, Member.
Smt. Sarmistha Nath, Member (W).
Date of filing: 12.09.2016.
Date of Order: 07.07.2017.
For the complainant : Sri G.N.Rout,Adv. & Associates.
For the O.P. : Sri S.N.Panda,Adv. & Associates.
.
Sri Bichitra Nanda Tripathy, Member.
The case is against deficiency in service and unfair trade practice on the part of the O.Ps.
In nut shell the case is that the complainant availed a home loan from O.P No.1 under “Special Home Loan Scheme” for construction of a house over plot NO.1/D-329,Sector-10,C.D.A,Cuttack. The rate of interest payable was 9.25% and the loan was repayable in 162 E.M.Is @ Rs.10,830/-. In the said approval letter it was categorically mentioned that “interest @ 9.25% p.a(fixed rate) with monthly rest to be reset at every 5years from the date of sanction with option(once) to change over to floating rate of interest at the end of 5/10/15 years”. Further it was also mentioned that “interest at 8% P.A(Fixed rate) for a period of one year will be charged from the date of disbursement. ( Copy of such approval letter vide Annexure-1). The construction of house was completed during June,2010 and E.M.I @ Rs.10,830/- was deducted towards loan of the complainant regularly. On 7.5.2016 the complainant sought details relating to his loan A/c from S.B.I,Tulsipur Branch and came to know that rates of interest charged in his loan A/c was @ 12.5%(Annexure-2). Complainant intimated the O.P on 22.6.2016 the circumstances under which the increased interest rate was increased from 9.25% to 12.5% (Annexure-3). The O.P vide their letter dt.20.06.2016 intimated the complainant that “with increase in cost of fund, Bank increased the fixed rate to 12.5% for Housing Loan up to 30 Lac and public notice to that effect had been published in their website and in all their establishments including print and electronic media. Hence loan account interest rate was changed from 9.25 to 12.5% w.e.f 16.7.2014.”(Annexure-4). The O.Ps have neither intimated the complainant regarding the change in the interest rate from 9.25% to 12.5% nor the complainant has even exercised his option for such change in terms of the approval letter dt.13.05.2009 of the O.P. Therefore the change in the interest rate behind the back of the complainant by the O.P is contradictory to their approval letter dt.13.05.2009 which amounts to unfair trade practice and deficiency in service. Finding no other way, the complainant has taken shelter of this Hon’ble Forum. He has prayed to direct the O.P to pay Rs.50,000/- towards deficiency in service on account of unfair trade practice, Rs.50,000/- towards mental agony and Rs.10,000/- towards litigation charges and the O.P Bank is duty bound to restore the interest in the home loan A/c of the complainant 9.25% p.a.
The O.P vide their counter dt.11.01.2017 has intimated that the complainant was sanctioned with a home loan of Rs.10,00,000/- on 13.05.2009 with interest @ 9.25% P.A.(Fixed rate) with monthly rest to be reset at every five years from the date of sanction with option(once) to change over to floating rate of interest at end of 5/10/15 years. (Copy of sanction order and agreement dt.13.05.2009 are Annexed vide Annexure-A & B respectively). The circular No.RE/HL/IR dt.06.08.2012 issued by the Bank was widely published in print and electronic media and displayed in O.Ps notice board in all the Branches and published in SBI’s Website. The effective rate of interest for home loan on fixed interest rate was due for interest rate reset. Thus interest on loans up to 30 lakhs was revised to 12.5%. As per sanction order vide Annexure-A, the interest rate was pegged at 9.25% to be reset at every five years from date of sanction. The rate of interest in complainant’s loan account @ 9.25% P.A continued up to 15.07.2014 and was revised to 12.5% w.e.f 16.07.2014. (Copy of said circular vide Annexure-C). The complainant did not exercise his option to change over to floating rate of interest for which rate of interest in his loan A/c was reset @ 12.5%.
Vide evidence affidavit dt.06.02.2017 the complainant has further intimated that the O.P has not intimated him regarding the change in the interest rate from 9.25% to 12.5%. The O.P changed interest rate from 9.25% to 12.5% w.e. f 16.7.2014 without his knowledge/consent. He did not have an occasion to go through the e-circular dt.06.08.2012 as regards to change in the interest rate in home loan. Had he been informed prior to such change in the interest rate from 9.25% to 12.5% w.e.f 16.07.2014 he would have either repaid the loan in full in lump sum @ 9.25% or would have accepted the changed rate of 12.5%. The characters of the term loan agreement for home loan are so small that no prudent person can read with naked eyes. The copy of such term loan agreement was also not given to him (the complainant).
We have gone through the record carefully and perused the documents minutely as filed by the complainant and as well as by the O.P, heard the learned advocates at length from both the side and have observed that the complainant had availed home loan of Rs.10,00,000/- from the O.P with interest @ 9.25% on 13.05.2009. The O.P Bank changed interest rate from 9.25% to 12.5% w.e.f 16.07.2014 i.e. after 5 years from the date of availing the loan by the complainant we agree that the O.P was within its right to alter/increase the rate of interest. It was indicated vide sanction letter dt.13.05.2009 of the O.P that “Interest at 9.25% P.A (fixed rate) with monthly rest to be reset at every 5 years from the date of sanction with option (once) to change over to floating rate of interest at the end of 5/10/15 years. The O.P Bank has reset the rate of interest from 9.25% to 12.5% after 5 years from the date of sanction back behind the knowledge of the complainant and without any information to the complainant and fact remains in this case that the O.P Bank has miserably failed to prove that at any point of time in the month of July,2014 or till the borrower obtained such information as required by him from the Tulsipur Branch of the O.P Bank on 07.05.2016, the O.P sent any such letter to the complainant for accepting the changed rate of interest @ 12.5% as applicable w.e.f 16.7.2014. Since the sanction letter dt.13.5.2009 contains a clause relating to pre-closure charges which indicates that “A pre-closure change of 2% of the amount prepaid in excess of normal E.M.I dues will be lavid in respect of pre-closure of Home Loans before expiry of the original tenure of the loan”. The borrower would have intimated regarding the change in the interest rate from 9.25% to 12.5% w.e.f. 16.07.2014 and he would have given a chance to close his loan account by paying 2% pre-closure charges. Thus the complainant was neither asked to utilize his option to change the interest rate from fixed to floating rate nor he was also not allowed to close his loan account by paying pre-closure charges due to enhance in the rate of interest from 9.25% to 12.5%. The O.P has also failed to prove that a copy of the loan agreement dt.21.05.2009 was given to the complainant at any point of time. The terms of the said agreement are printed in small letters/microprint which are cannot read conveniently. The R.B.I vide its circular No.DB Dir.BO.5/130300/2006-07 dt.01.07.2006 has intimated banks to reset the interest of loans after obtaining consent of the concerned borrowers and it is fact that the O.P has failed to obtain the consent of the borrower (complainant ) prior to change of interest from 9.25% to 12.5%
ORDER
Basing on the facts and circumstances as stated above, we have allowed the case against the O.P.Bank. The O.P. Bank will continue to change interest @ 9.25% in the said loan account of the complainant till they obtain consent from the complainant to change the same to 12.5%. O.P Bank will pay a sum of Rs.10,000/- as compensation to the complainant for mental agony and harassment.
Typed to dictation, corrected and pronounced by the Hon’ble Member in the Open Court on this the 7th day of July,2017 under the seal and signature of this Forum.
(Sri B.N.Tripathy )
Member.
( Sri D.C.Barik )
President.
(Smt. Sarmistha Nath) Member(W).
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