Date of Filing : 06.06.2012
Date of Order : 28.07.2012
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR
Dated 28th JULY 2012
PRESENT
Sri. H.V. RAMACHANDRA RAO, B.Sc., BL, ……. PRESIDENT
Sri. T.NAGARAJA, B.Sc., LLB. …….. MEMBER
CC No. 67 / 2012
Sri. Syed Afsar,
#1713, Madava Road, 4th Cross,
Robertsonpet,
KGF. ……. Complainant
V/s.
1. The Deputy General Manager,
State Bank of Mysore, Bangalore Zone-II,
2nd Floor, BKG Complex, Avenue Road,
Bangalore – 560 002.
2. The Manager,
State Bank of Mysore, BEML Nagar,
KGF – 563 115.
(By Sri. N.G. Vasudev Murthy, Adv.) …… Opposite Parties
ORDER
By Sri. H.V. RAMACHANDRA RAO, PRESIDENT
The brief antecedents that lead to the filing of the Complainant made u/s. 12 of the C.P. Act seeking direction to the OPs to refund interest subsidy of Government of Government of Karnataka regarding education loan and seeking direction to OP1 to stop recovery of the nil balance penalty from the Complainant’s account are necessary:
Complainant has availed education loan of Rs.1,75,000/- to his daughter Chandni.A. for the year 2008-09-10-11 and Rs.1,50,000/- to his another daughter Roshni.A. for the year 2009-10-11 from OP2 Bank. OP2 started recovery of interest on the said loans from the salary account of the Complainant, which is illegal. They have recovered 28 months interest on the said loans. On the application dtd. 12.04.2011, OP2 stopped recovery of the interest from May 2011. Complainant under RTI Act obtained the interest subsidy from the Government of Karnataka and Government of India that is being granted to all the education loans. Accordingly made representation to the Ops in this regard. Ops considered the interest subsidy granted by the Central Government for children of the Complainant and adjusted the same amount towards loan amount after producing the documents required by the OP2. The interest will have to be recovered if any only after professional course is completed by the children and not otherwise. But the OP has recovered the money which is illegal. OP is also recovering the penalty on the nil balance in the S.B. Account which is illegal. Complainant also requested the Appellate Authority which was sent to the Ops for consideration and payment of amount. High Court of Karnataka observed that recovery of penal charges from the customers in not maintaining minimum balance and ordered it has to be paid back.
2. In brief the version of Ops are:-
Obtaining of education loans from the Ops are admitted. As is the rule, loans sanctioned jointly to the parent and the students with the stipulation that the interest portion is to be recovered as and when applied. Principal portion would be recovered after completion of the study in EMI. Accordingly OP has collected interest from the S.B. Account of the Complainant. Further, when the Complainant requested, as a special case, recovery of interest was stopped. Karnataka Government has not provided any interest subsidy for the educational loan, Central Government has provided interest subsidy and whatever subsidy amount received that has been credited to the loan account. Hence Complaint be dismissed.
3. To substantiate their respective cases, parties had filed their respective affidavits. Arguments were heard.
4. The points that arise for our consideration are:
(A) Whether there is deficiency in service ?
(B) What order ?
5. Our findings are:
(A) Positive
(B) As per detailed order for the following reasons
REASONS
6. Reading the pleadings in conjunction with the affidavits and documents on record, it is an admitted fact that the Complainant had obtained education loan for his daughters by names Chandni.A. & Roshni.A. for professional course of B.E., i.e., Technical Course from the OP Bank. It is also an admitted fact that Ops have recovered interest of 28 months on the said loans from the Complainant’s S.B. Account and on the Application of the Complainant dtd. 12.04.2011, OP has stopped recovery of the interest amount from 01.05.2011. Letter of the Complainant reads thus:
“We have availed education loan for higher education of our children for BE from your esteemed Bank, SBM, BEML Nagar for the year 2009 to 2010 and thereon
As Central Government ministry of HRD New Delhi is reimbursing the interest amount of the education loan, kindly stop recovery of the interest amount from the parents salary for the month April 2011 salary onwards and refund the recovered amount of interest from January 2009 to March 2011 at the earliest.
We will be very much thankful to you if the said subject in implemented at the earliest.”
That is to say Complainant has requested the Ops to stop recovery of interest, since the interest being subsidized by Government of India. OP admits this, but states that Complainant sought to stop recovery of interest on the ground of personal difficulties and as a special case it has stopped recovery. The letter disproves the contention of the OP. Letter clearly states that Complainant wanted stopping recovery of interest since Government of India has subsidized it. Order of the Government of India clearly states that interest portion is borne by the Government and it is being subsidized. Hence, recovery of the interest for 28 months and not refunding is nothing but deficiency in service. These 28 months interest charged have to be repaid to the Complainant which has been recovered from his S.B. Account
7. The contention of the OP is that whatever the subsidy they have received, they have credited to the loan account. This is bald statement. If they have credited to the loan account, how can they recover from the Complainant for 28 months, the interest part. That has to be repaid to the Complainant. Hence, we hold the above points accordingly and we pass the following order:
ORDER
1. Complaint is allowed in part.
2. Ops are directed to pay entire interest amount which was recovered for 28 months in educational loan of Chandni.A & Roshni.A from the S.B. Account of the Complainant together with interest @ 12% P.A. from the date of the Complaint until payment within 30 days from the date of this Order.
3. Ops are also directed to pay Rs.2,000/- as costs of this litigation to the Complainant.
4. Ops are directed to send the amount to the Complainant as ordered at (2) & (3) above by Demand Draft through RPAD and submit to this Forum the compliance report with necessary documents within 45 days.
5. Send copy of the Order to the parties concerned free of cost.
6. Return extra sets to the parties concerned under Regulation 20(3) of Consumer Protection Regulations 2005.
(Dictated to the Stenographer, got it transcribed and corrected and pronounced in the open Forum on this the 28th day of July 2012)
T. NAGARAJA H.V.RAMACHANDRA RAO
Member President
SSS
