Delhi

New Delhi

CC/1767/2008

Nagendra Pal Singh - Complainant(s)

Versus

M/S. Dewan Housing And Finance Ltd. - Opp.Party(s)

11 Feb 2015

ORDER

CONSUMER DISPUTES REDRESSAL FORUM-VI

(DISTT. NEW DELHI), ‘M’ BLOCK, 1^STFLOOR,

VIKAS BHAWAN, I.P.ESTATE,

NEW DELHI-110002.

 

Case No.CC/1767/08                       Dated:

 

In the matter of:

SHRI NAGENDRA PAL SINGH,

BLOK NO.7, QTR. NO.105,

LODHI COLONY,

NEW DELHI-110003

 

……..COMPLAINANT

 

VERSUS

DEWAN HOUSING AND FINANCE LTD.,

 

ZONAL OFFICE:-

 

106 FIRST FLOOR,

NEW DELHI HOUSE,

27 BARAKHAMBA ROAD,

CANNAUGHT PLACE,

NEW DELHI-110001

TEL: (011) 23752436/39587179

                              

           ………. OPPOSITE PARTY

 

 

 

 

 

 

ORDER

Member: Ritu Garodia

The complainant    is pertaining to arbitrary increase in interest on home loan lading to unfair trade practices.

The complainant applied for a housing loan of Rs.6,00,000/- in May 2005.  The offer letter dated 24.5.05 sanctioned the aforementioned loan with 9.5% interest rate and EMI of Rs.5598/- to be payable for 20 years if it was accepted within 30 days.  The letter of guarantee as well as affidavit of complainant regarding possession of property is placed on record.  the amount of Rs.5,90,000/- was disbursed on 31.5.05 and remaining amount of Rs.10,000/- was disbursed on 30.7.15.  The complaint, thereafter, made repeated requests for receipt of various documents and PDCs submitted at the time of applying for loan as well as demanded detailed repayment schedule.

The complaint aver that Rs.4,960/- was charged as processing fees, Rs.4,500/- as administration charges and Rs.10,000/- as legal fees for documentation.

The loan statement by OP dated 01.3.07 reveals that the increase in interest rates as follows:-

31.5.2005              9.5% 

01.9.2005              9.75%        

01.3.2006              10.25%

01.8.2006              11.25%

01.9.2006              11.75%

The complaint avers that he was not informed of increase in interest rate and Rs.1922/- was charged as penalty.  The complaint then had to pay Rs.6515/- as EMI from March 2007 onwards.

Loan statement by OP dated 28.8.08 reveals

01.7.2008               14.5%

01.4.2008               14%

01.3.2008               12.75%

And Rs.1289 was charged as penalty.

The monthly instalment from March 2007 was Rs.7528/- from March 2008 onwards as stated in OP letter annexed at page 38.  The complaint further avers that interest was raised to 150.25% from 01.10.08 and monthly instalment subsequently was Rs.8026/-.  Complainant further avers that even after regular payment without default of 2.5 lakhs approximately, total amount repayable Rs.6,312,000/- on total loan availed of Rs.6,00,000/-.

OP in its reply admits the sanction of loan for Rs.6.5 lakhs at 9.5% rate of interest with variable rate.  OP admitted Rs.4500/- were taken as processing charges and rs.4600/- as service tax.  However, OP denied taking Rs.4500/- as administration charges and Rs.10,000/- as legal fees.  They further admit that Rs.10,000/- was disbursed on a later date as per their policy.  They further state that change in rate of interest was posted on their website www.dhjl.com and on their notice board.  OP has also denied not providing copies of documents demanded.  Op has also admitted that increase in RPLR(Revised Prime Lending Rates) is as their per internal policy and has been accepted by complainant.  OP further admits that rate of interest @ 15.25% was effective from 01.9.08.  OP gives credence to Clause 2 of loan agreement which states “increase the rate of interest suitably and prospectively, if unforeseen on exceptional or extraordinary charges in money make conditions take place.

After going through pleadings, evidence and documents on record of both parties, it is revealed that sanction of loan for Rs.6 lacs in May 2005 at 9.5% rate of interest in an admitted position by both parties.  The rate of interest was gradually raised to 15.25% from 01.10.2007 is also admitted by both parties.  Statement of loan account by OP reveals.

Date                      RPLR

31.5.2005              09.5%

01.9.2005              09.75%

01.3.2006              10.25%

01.8.2006              11.25%

01.9.2006              11.75%

1.3.2008                12.75%

1.4.2008                14%

01.7.2008              14.5%

01.9.2008              15.25%

OP has not given any reasonable explanation on justified this arbitrary increase in rate or based on any RBI guideline, OP has just stated that increase in RPLR was due to their internet policies but have given no rationale for this inflated rate of interest.

OP has taken Clause 2.2 of Loan Agreement for increase in interest rate but was not adduced any document/record showing extraordinary or exceptional change in money market.  Further perusal of this loan agreement reveals blank printed formats were signed by complainant giving no details of EMIs or interest applicable.

Further OP has not explained cheque bearing No.166428 dated 15.4.05 for Rs.4960/- as processing charge and cheque bearing no.166450 dated 24.5.05 for Rs.4500/- as rest processing charge.  OP has admitted taking Rs.4500/- as administrative charge but is silent about the remaining amount.

We find all interest charged by OP as arbitrary and in the nature of penalty and therefore, unconscienceable and against public policy.  Op is directed to reverse all interest charge and issue fresh notice of interest at same rate as nationalized bank and recalculate the interest.  After adjusting the amount already paid, fresh demand may be issued.  We also find OP guilty of unfair trade practice of arbitrarily raising the rate of interest and direct OP to pay Rs.1,00,000/- as compensation for deficiency, harassment, discomfort and inconvenience caused.

 The order shall be complied with within 30 days of the receipt of the copy of the order; otherwise action can be taken under Section 25 / 27 of the Consumer Protection Act.

Copy of the order be sent to the parties free of cost.

 

 

          Pronounced in open Court on 11.02.2015.

 

 

 

(C.K.CHATURVEDI)

PRESIDENT

 

 

 

(S.R. CHAUDHARY)               (RITU GARODIA)

MEMBER                                 MEMBER