Complainant Smt. Durga Sonkar by filing this complaint has submitted that she was in need of some found and money to face her personal problem and accordingly met with op no.2 at his Office- Muthoot Fincrop Ltd. and she disclosed her desire for taking loan and as per direction of the op no.2, she deposited some gold made ornaments before the op no.2 on 26.08.2013 having a total weight of the said gold is 220.599 gram vide G.L. No. F – 692 and after verifying all ornaments and being satisfied op no.2 sanctioned a gold mortgage loan of Rs. 4,04,000/- and at the time of said disbursement of the said loan, op no.2 assured to the complainant that they already fixed a rate of 12 percent p.a. interest flat rate against the said gold loan.
But it is very unfortunate that when the complainant went to pay the interest of the said loan after completion of one month of the loan, he was told by the op no.2 that the rate of interest was fixed 24 percent to 30 percent p.a. and complainant must have to deposit that rate of interest instead of 24 percent p.a. flat rate.
Having knowing this fact, complainant requested the op no.2 for taking the interest at the rate 12 percent pa. flat rate as per their assurance at the time of taking loan, but op no.2 demanded 24 percent to 30 percent p.a. interest for the said gold loan from the complainant.
Practically after taking the said loan, complainant deposited money to the op no.2 time to time but after deposit of some money, complainant met with the op no.2 and demanded foreclosure statement for settlement the matter but the op no.2 refused to give such statement to the complainant. Then on 26.08.2014 suddenly op no.2 issued one notice to the complainant without any proper statement and on the said notice the op no.2 mentioned that the loan tenure is 12 months which is totally false and baseless and as per said notice, complainant met with op no.2 on 08.09.2014 and further requested him to hand over the fore-closure statement but op no.2 refused the same.
Thereafter on 08.10.2014 complainant sent one letter before the op no.2 for extension of the loan period for another three months, but after receiving the said letter op no.2 did not care to reply till today. Subsequently on 16.10.2014 op no.2 sent one auction notice before the complainant and they had fixed the date, time and place of auction as per their wellness and on receipt of the said notice and as per direction, complainant met with op no.2 at his office on 24.10.2014 and requested him for the statement to settle the said loan and submitted a statement, but op refused the same and also told if the complainant pay Rs. 8 lakhs within 24 hours they would return the said deposited gold articles, otherwise they will sale at the said gold articles.
Practically complainant submitted that there is no justified ground in with holding the claim of the complainant and in fact such activities on the part of the op and for selling the gold illegally and in fact the interest assessed is completely illegal for which complainant has prayed for redressal.
On the other hand op admitted that complainant took loan of Rs. 4,04,000/- after pledging gold on 26.08.2013 vide G.L. No. F692. But op submitted that as per agreement complainant shall have to pay the said amount within 12 months along with loan sanctioned amount and also interest at the rate 24 percent p.a. over the said amount. But complainant after taking such loan did not pay any amount for which op served notice and it was received by the complainant and several reminders also submitted finally NPA notice on 26.08.2014 which was also duly acknowledged by the complainant on 29.08.2014 and ops were constrained to send the auction notice by registered post on 15.10.2014 which was received by the complainant on 18.10.2014 to realise their dues. It was mentioned in the auction notice to redeem the pledge on or before 04.11.2014 failing which the ornaments would be auctioned on 10.11.2014 and paper publications were also made in Indian Express on 25.10.2014. Practically there was no deficiency or negligence on the part of the op no.2 and fact remains that the interest rate was 24 percent to 30 percent, not 12 percent p.a., so the entire complaint is false and present complaint should be dismissed.
Decision with reasons
On proper consideration of the complaint and including written version and also considering the materials as submitted by the complainant and the op, it is clear that complainant took personal loan of Rs. 4,04,000/- on 26.08.2013 after pledging Gold vide GL. No. F692. But most interesting factor is that op has failed to produce any agreement executed by the complainant and op in respect of said gold loan. On the contrary, it is found that op charged 24 percent as interest over the said Gold Loan and no doubt loan was sanctioned on 26.08.2013 and op has asserted that period of payment of loan amount is one year. But such document is produced by the op to show that the loan was granted for one year term.
At the same time no document is produced by the op to show that interest rate was 24 percent p.a. But in the receipt of Gold Loan, it is specifically mentioned that op shall have to pay the said loan amount within the period of 12 months together with interest at the rate 24 percent p.a.. In this regard we have gone through the RBI Rules wherefrom it is found that the rate of interest in respect of Gold Loan or whatever in nature, interest rate shall not exceed 13 percent p.a. in case of Gold Loan. But that rate of interest shall be increased when loan amount exceeds Rs. 10,00,000/-. But it is found that as per RBI guidelines, the present op cannot realise any interest above 13 percent p.a. over the said personal loan amount of Rs. 4,04,000/-. But op charged 24 percent p.a. over the said Gold Loan which is completely against the guideline of the RBI and admitted fact is that op is guided by RBI guidelines and that has been admitted by the op in their written statement.
Most interesting factor is that even in the case of home loan, highest interest can be charged up to 11 percent to 14 percent and in case of present loan, the said interest cannot exceed 13 percent p.a. But anyhow op has failed to produce any such paper or instruction, guidelines of RBI to show that in respect of personal loan of Rs. 4,04,000/- op can assess interest at the rate 24 percent p.a. and in fact after considering the fact, it is clear that in respect of Gold Loan, op acted illegally beyond the regulation of the RBI and such an amount cannot be assessed as interest that is 24 percent p.a. to 30 percent p.a. and such sort of act on the part of the op is no doubt against the principle of RBI guidelines and no doubt in respect of alleged auction, no specific publication in respect of the complainant’s Gold is published in the name of the lonee member and nothing is published there. Only publication is made about sale of Gold without mentioning the names of the parties, error of amount, actual loan taken, actual interest rate and total amount. But only Gold auction notice was served. So, such a notice in the eye of law is illegal and in case of auction an auction procedure as per law is not at all followed by the op and for which this Forum cannot rely upon such arbitrary notice for sale of gold of the complainant. But ops’ Ld. Lawyer submitted that they have not sold it because already the case has been filed and from the said notice, it is found that it was published on 24.10.2014 and the present complaint was filed on 31.10.2014 and fact remains on 25.11.2014 ops appeared and prayed for filing written version and date of sale was fixed on 10.11.2014.
But fact remains that ops have not sold the said gold, it is in their custody. So, invariably complainant can get back the said pledged gold from the op if complainant pays the entire loan amount of Rs. 4,04,000/- including 13 percent interest p.a. over the said amount within two months from the date of this order and fact remains this order is passed considering the ops’ arbitrarily charge of 24 percent interest in place of 13 percent and also for adopting unfair practice and violating the rules and regulations of RBI, we are confirmed that complainant has been harassed and she has been deceived by the ops and in the above situation, ops shall have to settle the entire loan amount charging 13 percent p.a. interest over the same and hand over a detailed statement of account to the complainant within 15 days from the date of this order and complainant shall have to pay that amount if she is satisfied that 13 percent p.a. interest have been assessed over the said loan amount and thereafter complainant shall repay the same within two months from the date of this order and till full satisfaction of the money within two months with interest at the rate 13 percent p.a. which shall always be assessed by the op. Accordingly the matter is settled and ops are directed to comply this portion of the order and accordingly this complaint succeeds.
Hence, it is
ORDERED
That the complaint be and the same is allowed on contest against the ops with a cost of Rs. 5,000/-.
Ops are hereby directed to hand over the detail statement of outstanding dues of the loan amount of Rs. 4,04,000/- after charging 13 percent p.a, interest over the same since the date of taking loan since 26.08.2013 till the date of assessment of the same and to hand over the same to the complainant and the said statement shall be handed over to the complainant positively within 15 days from the date of this order.
On receipt of the said statement if complainant is satisfied about the assessment of interest over the said loan amount, complainant shall report forthwith to this Forum and shall have to clear the entire dues within two months from the date of this order giving 13 percent p.a. interest over the loan amount till the date of clearing the entire loan amount including interest.
On clearance of the entire dues submit the order and op shall have to release and refund the gold in proper condition and as per satisfaction of the complainant within seven days from the date of full and final payment of the entire settled amount with interest as per this order.
Parties are directed to comply the order and ops shall have to comply the same positively without selling the said gold and if it is found that violating the Forum’s order, gold is sold by auction by the ops, in that case, ops shall have to deposit the entire market value of the gold as on the date of deposit of the amount before this Forum along with statement of account in respect of the loan including 13 percent p.a. interest w.e.f. 26.08.2013 and till the date of submission of the said statement.
If any complication is arisen due to negative attitude of the op the Forum shall take such decision in this regard to give proper effect of this order.
Ops are directed to comply the order or to face penal action in this regard u/s 27 of C.P. Act 1986 for which they shall be imposed penalty and fine etc.
