Chandigarh

DF-I

CC/428/2021

Tarun Arora - Complainant(s)

Versus

India Bulls Housing Finance Ltd. - Opp.Party(s)

N.S. Jagdeva

25 Jul 2023

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-I,

U.T. CHANDIGARH

 

                    

Consumer Complaint No.	:	CC/428/2021
Date of Institution	:	5.7.2021
Date of Decision	:	25/7/2023

 

Tarun Arora S/o late Sh. Rajinder Kumar Kuki Hot Shop H. No.3456 FF, Sector 23-D, Chandigarh.

 

… Complainant

V E R S U S

1. India Bulls Housing Finance Ltd. through its Managing Director M-62&63, First floor, Connaught Place, New Delhi 110001.
2. India Bulls Housing Finance Ltd.  Home Loans through its Branch Manager SCO 347-348, Sector 35-B, Chandigarh.

.  … Opposite Parties

 

CORAM :	PAWANJIT SINGH	PRESIDENT
	SURJEET KAUR SURESH KUMAR SARDANA	MEMBER MEMBER

                       

ARGUED BY		Sh. N.S. Jagdeva counsel for complainant alongwith complainant in person.
		Ms. Niharika Goel vice counsel for Sh. Paras Money Goyal, Counsel for OPs alongwith Ms. Harsimran Kaur Legal Manager of OPs.

Per SURESH KUMAR SARDANA, Member

     Briefly stated the complainant availed a loan of Rs.24,41,798/- from the OPs. The OPs supplied no copy of loan agreement to the complainant and the complainant was made to sign  the agreement on the dotted lines. The installment of the loan was Rs.30610/- per month started from 5.4.2016 to be paid in 144 installments upto 5.4.2028. on 5.1.2018 due to a scheme launched by the OPs the installment was reduced to Rs.29,333/- p.m.  on payment of certain amount paid in lump sum to the company and the payment scheduled remained the same. The complainant was paying the regular installments of the loan, however,  in the year 2020 due to Lockdown imposed by the Government the business of the complainant closed and he could not pay the five monthly installments of loan. It is alleged that the OPs arbitrarily revised the installment repayment schedule from 144 to 187 and further the amount of installment has also been revised from 29333/- to Rs.30971/-  and the tenure of the loan was also extended for 3 years without taking any consent from the complainant. The complainant raised the issue with the OPs many a times and also sent legal notice dated 9.4.2021 but to no avail. Alleging the aforesaid act of Opposite Parties deficiency in service and unfair trade practice on their part, this complaint has been filed

2. The Opposite Parties  in their reply stated that as per clause 2.3 of the loan agreement OPs are entitled to change the applicable rate of interest at its sole discretion with prospective effect with intimation to the borrower/complainant and the same shall be acceptable to the borrower/complainant. it is averred that that the OPs keep various factors in view while increasing/decreasing applicable rate of interst i.e. change in risk weightage, external or internal policies or its unforeseen or extraordinary changes in the money market conditions and the decision taken by the OPs regarding this effet would be final and binding on complainant. The complainant agreed and undertaken that the decision so taken by OPs would not be challenged or question. It is further averred that the complainant was agreed that for administrative convenience the EMI amount is intended to be kept constant irrespective of variouations in the adjustable interst rate and therefore, number of EMIs is likely vary on account of  variation in adjustable rate of interest. In view of this OPs are entitled to increase or decrease number of EMIs with/without changing the EMI amount with prior intimation to the complainant. The OPs had intimated the complainant about effective change in rate of interest in the loan account vide email dated 20.4.2018, 17.8.2018, 18.6.2018, 8.10.2018, 9.8.2018. It is denied that there is any deficiency on the part of the OPs.  All other allegations made in the complaint has been  denied being wrong.
3. Rejoinder was filed and averments made in the consumer complaint were reiterated
4. Contesting parties led evidence by way of affidavits and documents.
5. We have heard the learned counsel for the contesting parties and gone through the record of the case.
6. On perusal of the complaint it is observed that the grievance of the complainant is that the loan repayment scheduled originally spread over to 144 installments was increased illegally payable in more installments i.e. 187 installments. EMI installment amount was also increased from Rs.29333/- p.m. to 30971/- p. m. illegally and without informing the complainant.
7. We have perused the Annexure OP-2, which contains the terms and conditions of loan agreement, which is duly signed by the complainant himself on each page. We have also perused Annexure OP-3, which is a copy of loan sanction letter, duly signed by the complainant. It is very clearly mentioned in the said sanction letter that the loan sanctioned carries adjustable interest rate on LAP floating reference rate. The EMI amount is mentioned as Rs.30610/-. We are of the view that since the loan availed was carrying adjustable interest rate, hence, the number of EMI is to be charged can change based on the interest rate to be charged as per rules.
8. Since the OPs were required to charge only Rs.30610/- per month as EMI  as stipulated in the loan sanction letter but by charging /levying EMI of Rs.30971/- without the prior concurrence of the complainant by the OPs is  unfair trade practice  on their part and they are also deficient in rendering service.
9. In view of the above discussion, the present consumer complaint partly succeeds and the same is accordingly partly allowed. OPs are directed as under:-

1. OPs are directed to issue fresh statement of account, by correcting the EMI amount as agreed in the T&C of loan sanction letter.
2. to pay Rs.30,000/- to the complainant  as compensation for causing mental agony and harassment to him;
3. to pay Rs.10,000/- to the complainant as costs of litigation.

10.      This order be complied with by the OPs within thirty days from the date of receipt of its certified copy, failing which, they shall make the payment of the amounts mentioned at Sr.No. (ii) above, with interest @ 12% per annum from the date of this order, till realization, apart from compliance of direction at Sr.No.(i)&(iii) above
11.      Certified copies of this order be sent to the parties free of charrge. The file be consigned

			sd/- [Pawanjit Singh]
			President
			sd/-
			[Surjeet Kaur] Member sd/-
25/7/2023			[Suresh Kumar Sardana]
mp			Member