ORDER                                    Dated:  27-01-2017

Mohd. Anwar Alam, President

1. The complainants have filed this complaint on 15-12-2014 and alleged that they had applied for Home loan at OP’s branch at Karol
   Bagh, New Delhi in respect of the property bearing no. E-40, Ground Floor, Bali Nagar. New Delhi-110015. After certain formalities OP’s sanctioned the home loan and also issued sanction letter dated 28.06.2014 containing all the details of loan  and on the same day loan agreement was executed between both the parties  and complainants were allotted with loan A/c no. HHOMDEL0038049. A total amount of Rs. 86,00,000/- was sanctioned and Rs. 2,00,000/- was deducted for processing fee and for term insurance from the disbursement amount of Rs.  86,00,000/-. The monthly EMI was fixed for Rs. 1,03,215/- payable from July 2014 with due date 04/08/2014. Consequently the complainants started paying EMI without any default and the OP took 7 EMIs till February 2015.  Complainants made request to OP to foreclose the loan and tell the full and final amount payable by them but very strangely the OP replied the mail saying ‘the loan cannot be closed within one year of full disbursement’, whereas it was never agreed. The complainants  felt cheated, harassed and helpless.  On 13.02.2015 the OP’s sent its letter demanding penalty and foreclosure the loan, the complainants had to pay the monthly installments of Feb 2015, whereas the complainant no. 1 had requested in writing to foreclose the loan in the first week of January 2015.  Ultimately complainants paid whole of the amount demanded by the OP illegally defying the RBI notification. Further the officials of OP involved in the offence of cheating and forgery for the same.    Hence complainants prayed to direct OP to pay the amount of Rs. 4,28,594/- to the complainants which includes foreclosure charges of Rs. 3,80,564/- and interest which was wrongly claimed of Rs. 48,030/- with interest @ 24% p.a.  from the day of the payment and to pay the amount of Rs. 1,03,215/- to the complainants i.e. the installment of February 2015 which has been illegally taken and Rs. 1,00,000/- taken as premium insurance. Complainant further prayed to direct OP to pay Rs. 2,00,000/- as compensation for mental agony, harassment  and legal expenses.  
2. In reply, OP admitted that at time of sanction of the loan the complainant duly acknowledged terms and conditions of the sanction letter of home loan dated 28.06.2014 and in cases where the loan is foreclosed before 12 months from the date of full disbursement the OP may levy foreclosure charges. OP denied rest of the allegations and prayed to dismiss the complaint.
3. The complainants have filed rejoinder to the written statement and denied the objections made by the OP and supported his complaint.
4. In support of  his complaint complainant no. 1  filed his own affidavit along with documents i.e. sanction letter dated 28-06-2014 (Ex. CW-1/A), copy of DCB Home loan agreement (Ex. CW-1/B) , letter dated 30.06.2014 containing the  terms and conditions of the loan (Ex. CW-1/C) , Account Statement from June to Feb 2015 (Ex. CW-1/D) , letter dated 19.01.2015 (Ex. CW-1/E) , copy of e-mails conversation (Ex. CW-1/F) (colly), letter dated 13.02.2015 regarding foreclosure of  loan (Ex. CW-1/G) , letter dated 23.02.2015 (Ex. CW-1/H),  another loan sanction letter dated 28.06.2014 (Ex. CW-1/I) ,  complaint to SHO dated 24/09/2015 (Ex. CW-1/J) , report of handwriting expert (Ex. CW-1/K) , notice sent to OP (Ex. CW-1/I) , postal receipts (Ex. CW-1/M) (colly) , track report (Ex. CW-1/N) (colly). Complainant no. 2 filed affidavit of Sh. Sundaram, Advocate along with documents i.e. copy of application (Ex. CW2/A), Information given by RBI with its reply (Ex. CW2/B) and envelop (Ex. CW2/C).
5.  In support of reply OP  filed affidavit of Sh. Mayank Dutt Chaudhary , Legal officer along with documents i.e. power of attorney dated 09.06.2014 (Ex.OP-1/1) , letter dated 13.02.2015 (Ex. OP-1/2), sanction letter (Ex. OP-1/3)  copy of agreement (Ex. OP-1/4)
6. Both the parties filed their written arguments.
7. We have heard the arguments and considered the evidence led by the parties and their written and oral arguments.  In this case points to be considered are as under:-

1. Whether complainants are consumers?

 (b) Whether there is any deficiency in service on the part of the OP?

(c) Relief?

8. In reply, OP admitted that at time of sanction of the loan the complainants duly acknowledged terms and conditions of the sanction letter of home loan dated 28.06.2014 hence complainants are  consumers.

9. In this complaint main dispute is regarding foreclosure charges taken by the OP against the RBI Instructions (Ex. CW2/B). OP filed document (Ex. OP1/3) relating to the general terms and conditions wherein in terms and condition no. 23 regarding foreclosure it was agreed between the parties as under:-

1. Prepayment (foreclosure) of the loan is not permitted in the first 12 (twelve) months from the date of full disbursement.
2. For loan availed under part fixed + part variable rate of interest, on completion of 12 (twelve) months from the date of full disbursement charges plus applicable service tax would be levied to the borrower on outstanding loan amount including any part payment made during the financial year , as per applicable rate.

           10.  Complainant witness Sundaram deposed that he sought information under the RTI Act 2005 from RBI  as to whether foreclosure/ prepayment penalty charges can be levied by the bank from home loan if the same is done within one year from the period of disbursement of loan. The RBI has given the information and its reply which is Ex. CW2/B and envelope is  Ex. CW2/C. As per reply of the RBI instructions were already issued to the banks  that banks are not to be permitted to charge foreclosure charges/ prepayment penalties on all floating rate, terms loan sanctioned to the individual. The terms and conditions of the home loan under the contract between complainants and OP will not prevail over the guidelines issued by RBI (Ex. CW2/B)  hence foreclosure charges taken from the complainant  vide letter dated 16.02.2015 by the OP i.e. interest till date of foreclosure amounting to Rs. 48,030/-  and foreclosure charges Rs. 3,80,564/- are not justified and against the above mentioned guidelines of the RBI. As OP issued this above letter on 16.02.2015 and this letter itself clarify that the next EMI presentation date is 04.03.2015 therefore  installment of Feb 2015 paid  to the OP is not refundable.

11. Looking to the above facts and circumstances we are of the considered opinion that deficiency on the part of OP is proved and we direct OP as under:

1. To refund of foreclosure charges amounting to Rs3,80,564/- and interest till date of foreclosure amounting to Rs. 48,030/-  totaling  Rs. 4,28,594/- along with interest @ 10 % p.a. from the date of its payment till realization. 

2. To pay Rs. 50,000/- as compensation for harassment  to the complainant.

3. To pay litigation cost of Rs. 5,000/- to the complainant.

    12.   The above amount is payable within two  months from the date of receipt 

             of order failing which an interest @ 10% p.a. will be payable on the whole

             amount.

13. Copy of the order be made available to the parties as per law. File be consigned to record room.

           Announced on this ………………