The case of the complainant, in short is that being an un-employed youth he had applied for PMGSY loan to the DIC and as he was selected for establishment of Welding & Fabrication work on the recommendation by the DIC the Opposite Party sanctioned a loan of Rs. 1,90,000/- for the project called as Rakesh Welding & fabrication Work. The Opposite Party has deducted Rs. 22,000/- from the SBI account of the complainant towards margin money vide his S.B. A/c No. 11384542127 ( Old No. 01190015149 & 11389542036 ) and deposited in the T/L account of the complainant. After sanction of the loan of Rs. 1,90,000/- the Opposite Party had deposited Rs. 90,250/- to the TL Account No. 3112473266 of the complainant and Rs. 99,750/- to the CC account 31112516337 of the complainant. After sanction of loan, the complainant started his venture and he has deposited the loan dues in time but the Opposite Party illegally and arbitrarily issued a notice on 16.02.2012 directing the complainant to regularize the irregular loan account of Complainant. However on receipt of notice from the OP the complainant has deposited Rs. 44,000/- on 5.3.2012 and on the same day the complainant requested the Opposite Party to close the loan account by adjusting the subsidy amount of the loan. Without closing the loan account of the complainant, the Opposite Party plays hide and seek game with the complainant and delayed to close the loan account of the complainant till date. Further case of the complainant is that as per the PMEGP guidelines no interest shall be calculated on the subsidy amount of the loan but the OP has illegally and arbitrarily calculated interest on subsidy amount and charged on the complainant with penal interest. It is also submitted that, the Opposite Party has illegally and arbitrarily without closing the loan account of the complainant charged excess penalty interest and without prior notice deducted Rs. 40,000/- on 29.03.2014 from the SB account of the complainant and deposited with the CC account No. 31112516337. Due to such arbitrary deduction of Rs. 40,000/- from the S.B. account, the complainant could not solemnize was the marriage of his only sister fixed on 2.4.2014 and the complainant defamed in the society. It is further submitted that, though the complainant has deposited excess amount in his loan account for which the Opposite party is liable to refund the excess amount but the Opposite Party without taking into the calculation demanding Rs. 19,533/- illegally and arbitrarily vide his letter No. RDB/44/71 Dated 28.04.2014. Several requests to the Opposite Party for proper and correct calculation of all deposits, waive out of penal interest, withdraw of calculation of interest in subsidy amount, adjustment of Margin Money of Rs. 22,000/- and subsidy amount from the account got in veined. Due to unfair trade practice and deficiency in service, finding no other alternative the complainant filed this case against the Opposite Party with a prayer to direct the Opposite Party to close the loan account by correct calculation of all deposits, waive out of penal interest, withdraw interest calculated in subsidy amount, adjustment of money of RS. 22,000/- and subsidy amount from the loan account, to direct the Opposite Party to refund the excess deposits with interest to the complainant forthwith, award Rs. 50,000/- towards compensation for harassment, award Rs. 10,000/- towards the cost of litigation expenses and any further order/orders as the Hon’ble forum deems fit and proper in the interest of justice.
Upon notice the Opposite Party appeared through his Advocate and filed his written version. In his written version the Opposite Party submitted that the DIC approval is yet to be received for normalization of subsidy which has been received by the bank and but not credited to his account and as such no interest is charged on subsidy amount.
In support of his case the complainant has filed the copy if letter of arrangement letter marked herein as Exibit C/1, copy if representation of the complainant marked herein as Exibit C/2 and C/3, copy of S.B.I marked herein as Exibit C/4 & C/5, Copies of statement of account No. 31112473266 marked herein as Exibit-C/6(a) and Exibit C/6(b) and Copies of statement of account No. 31112516397 marked herein as Exibit-C-/7(a) to Exibit-C/7(e), Copy of PMEGP guideline marked herein as Exibit C/8, (services) Copy of modalities of the operation of the PMEGP scheme marked herein as Exibit-C/9.
In support of his case the Opposite Party has not filed a scrap of paper.
Heard the complainant and learned counsels for the Opposite party, perused the case record, pleadings of the parties and the documents filed for our appreciation. After hearing both the sides and going through the facts and circumstances of the present complaint, evidence adduced by the complainant. We are of the considered view that the complainant successfully proved his case.
In course of hearing we gone through the GUIDELINES ON PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) at Exibit C/8 and the Clause-11 (I) & (n) reads as follows :
(k) After the release of Bank finance either partly or fully, Bank will submit Margin Money (subsidy) claim in the prescribed format to the designated Nodal Branch of the State/region where KVIC has placed lump sum deposit of Margin Money (subsidy) in advance in the Saving Bank Account in the name of KVIC, for release of Margin money (subsidy). In the case of projects financed by the branches of the Regional Rural Banks, the financing branches of the RRBs will have to submit the Margin Money (subsidy) Claim to their Heard Office, which, in turn, will submit the consolidated claims to the designated Nodal Branch of their sponsoring Bank. In the case id projects financed by SIDBI, the guidelines issued by SIDBI for release of loan/margin money (subsidy) will be followed. Through the margin money (subsidy) will be released by the designated Nodal Branch of the Bank, KVIC/State DIC is the final authority to either accept the project/claim or reject, based on the parameters of the Scheme. Detailed grounds for rejections shall be maintained by
KVIC/KVIBs/DICs. A separate system of acknowledging grievances or complaints will be instituted by KVIC/KVIBs and DICs and a monthly report with the details of grievances / complaints received and the status / action taken for their redressal shall be furnished to CEO, KVIC by KVIC by KVIBs and DICs. A consolidated report will be forwarded to the Ministry of MSME every quarter by CEO, KVIC.
(I) Once the Margin Money (subsidy) is released in favour of the loanee, it should be kept in the Term Deposit Receipt of three years at branch level in the name of the beneficiary/Institution. No interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of TDR.
(m) Since “Margin Money” (subsidy) is to be provided in the from of subsidy (Grant), it will be credited to the Borrowers loan account after three year from the date of first disbursement to the borrower/institution, by the Bank.
(n) In case the Bank’s advance goes “bad” before the three year period, due to peasons, beyond the control of the beneficiary, the Margin Money (subsidy) will be adjusted by the Bank to liquidate the loan liability of the borrower either in part or full.
In course of hearing we further referred the modalities of the operation of the PMEGP scheme issued by the Khadi & Insudtries Commission at Exibit C/9 which reads as follows :-
(6) “Once the Margin Money is released in favour of the loanee, it should be kept in the Term Deposit Receipt of 2 years at branch level in the name of the beneficiary/Institution. No interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of TDR”
(7) “Since Margin Money is to be provided in the from of middle-end Subsidy (Grant), it will be credited to the Borrowers loan account after 2 years from the date of first disbursement to the borrower/institution.”
(16) “Margin money Claim will be submitted by the Financing Branch of the Bank to the designated Nodal Branch within 15 (fifteen) days from the date of disbursement of first installment and the Nodal branch will have to submit to KVIC/KVIB with in another 15days altogether within 30 days. Belated claims will be entertained only on approval by the State/Regional Office of the KVIC.”
On perusal of statement of accounts filed by the complainant at Exibit-7 (a) to 7(e) and now referred to above guideline at Exibit C/9 it is clearly established on record that the Opposite Party has charged interest on margin money from the date if sanction and did not adjust it properly as per the PMEGP guidelines after two years on the loan account of the complainant for which the complainant paid axcess interest and penalty on and above his loan account. Further without following PMEGP guideline the Opposite Party has arbitrarily deducted Rs. 40,000/- on 29.03.2014 from the S.B Account of the complainant. In our view it is a clear cut case of deficiency in service on the part of Opposite Party who did not complied with the PEMEGP guideline and operation modalities issued by the Khadi & Village Industries commission and charged interest on margin money, charged penal interest, improper calculation, arbitrary deduction from SB account of the complainant act and this act of the Opposite Party clearly clearly proved the deficiency in service towards the complainant.
From the above discussion, we are of the view that the Opposite Party is deficient and negligent as per Section 2 (1) (g) & 2 (1) (o) of the Consumer Protection Act, 1986 amended up to date. Obviously, complainant has suffered financial losses, mental agony, hardship and harassment due to the deficient and negligent act of the Opposite Party.
Accordingly under the provisions of Section 14 of the Consumer Protection Act, the present complaint is accepted against Opposite Party. The Opposite Party is directed to re-calculate the loan account of the Complainant from the date of sanction as per the provision of PMEGP guideline read with operation modalities issued by the Khadi & Village Industries commission and waive out the extra interest/penal interest and set the loan accounts standing in the name of the complainant accordingly. The Opposite Party is also directed to pay an amount of Rs. 5,000/- to the complainant as compensation for harassment suffered by him. The Opposite Party is also directed to pay Rs. 3,000/- as litigation charges to the complainant. Compliance of this order be made within 30 days from the date of receipt of this order. In default, the Opposite Party is liable to pay Rs. 100/- per day of default till its final realization. With these observation, the present complaint is disposed of.
Supply free copy to the parties as per rules.
Delivered in open forum on this the 9th day of November,2015.
