Chandigarh

DF-I

CC/925/2022

TANMAYA KALRA D/O SH MOHAN LAL KALRA THROUGH GENERAL POWER OF ATTORNE HOLDER SH MOHAN LAL KALRA S/O SH GIRDHARI LAL KALRA - Complainant(s)

Versus

STATE BANK OF INDIA RASMECCC THROUGH ITS BRANCH MANAGER - Opp.Party(s)

DEEPAK AGGARWAL AND GAUTAM KUMAR GOYAL

01 Aug 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-I,

U.T. CHANDIGARH

                                     

Consumer Complaint No.	:	CC/925/2022
Date of Institution	:	15.11.2022
Date of Decision	:	01/08 /2024

 

Tanmaya Kalra D/o Sh. Mohan Lal Kalra, Resident of House No. 1321/A, Sector 20, Chandigarh-160020 through general power of attorney holder Sh. Mohan Lal Kalra S/o Sh. Girdhari Lal, Resident of House No. 1321/A, Sector 20, Chandigarh-160020.

… Complainant(s)

Versus

 

State Bank of India, RASMECCC, Sector-5, Panchkula-134109 through its Branch Manager.

 

Opposite Party

CORAM :	SHRI PAWANJIT SINGH	PRESIDENT
	MRS. SURJEET KAUR	MEMBER
	SHRI SURESH KUMAR SARDANA	MEMBER

 

                                                                               

ARGUED BY	:	Complainant in person
	:	Sh. Ranvir Sood, Advocate for OP (OP exparte).

Per Pawanjit Singh, President

1. The present consumer complaint has been filed by the complainant under Section 35 of the Consumer Protection Act 2019 against the opposite parties (hereinafter referred to as the OP). The brief facts of the case are as under :-

1. It transpires from the averments as projected in the consumer complaint that on 17.8.2021 the complainant had applied for education loan  for the purpose of expenses of her education towards  course of graduation at London (King’s College London) from the OP, on the assurances and the projections made by the OP with  following concessions:-

a) 0.50% concession in interest rate of girl students availing Education Loans.

b)) 0.50% concession for students availing of SBI Rinn Raksha. Value of the policy should be equivalent to the loan amount. In case the student is already having a Life Insurance policy for an amount equivalent to the loan amount, this concession will be extended only if the policy is assigned in favour of the Bank. (applicable under SBI Global ED-Vantage Loans & SBI Student Loan of Rs. 7.5 Lakhs for public borrowers only).

 On  28.8.2021  the term loan of Rs.70,78,304 was sanctioned by the OP which included Rs.70,00,000/- towards education loan and Rs.78,304/- towards the SBI Rinn Raksha Life Insurance Policy for an amount equivalent to the loan amount. As per sanction letter Annexure C-2, it was advised by the OP to the complainant to call Panchkula RSMECCC Branch for execution of documents and disbursement  of the amount as per schedule and the related documents were also forwarded to the said branch. In pursuance to the above said letter Annexure C-2, the complainant alongwith other family members visited the RASMECCC branch  where the complainant was asked to sign  number of pre-printed formats/arrangement letter for term loan under education loan scheme including blank paper etc.  and only thereafter the term loan of Rs.70,78,304/-  was sanctioned and the copy of original letter dated 1.9.2021  is annexed as Annexure C-3. Thereafter when  the invoice dated 11.10.2021 Annexure C-4, towards tuition fee was issued by King’s College London, Finance Department, loan amount of pounds 20,790/-and when the same was submitted with OP a total sum of Rs.6,80,000/- were released/disbursed  by the OP towards the first year tuition fee of the complainant including Rs.9,04,000/- towards house rent and maintenance. After availing loan towards study loan the OP started deducting interest regularly  from the saving account of the complainant w.e.f. 1.11.2021 and the copy of statement of account is
Annexure C-5. After one year, when the yearly statement was issued by the OP it transpired that the OP was charging higher rate of interest than the  agreed upon and further concession which was committed by the OP vide arrangement letter for terms loan dated 1.9.2021 was not honoured. Not only this, the concession of 0.50% for students availing SBI Rinn Raksha Life Insurance policy  was not given and in this manner the OP is indulged in unfair trade practice. The complainant approached the OP with the request to charge interest as agreed upon but with no result. Since the OP obtained the signature of the complainant on plain paper having pre-printed formats etc, the aforesaid act of the OP amounts to deficiency in service. OP was requested several times to admit the claim, but, with no result.  Hence, the present consumer complaint.

2. OP represented through counsel however despite giving ample opportunity to file reply and evidence none turned up on behalf of OP on 13.3.2023 for filing reply and evidence, hence, OP was proceeded against ex-parte on 13.3.2023.

2. In order to prove her claim the complainant has tendered/proved her evidence by way of affidavit and supporting documents.
3. We have heard the learned counsel for the parties and also gone through the file carefully.
   1. At the very outset, it may be observed that when it is an admitted case of the complainant that  the complainant has applied for education loan with the OP to the tune of Rs.70,78,304/ which was sanctioned in favour of the complainant for her education at King’s College London on 28.8.2021  which included Rs.78,304/- towards SBI Rinn Raksha Life Insurance Policy  as is also evident from Annexure C-2 and  after release/disbursement of first installment by the OP  to the tune of Rs.6,80,000/-  and Rs.9,04,000/- in pursuance to the invoice Annexure C-4 issued by the King’s College London, the OP had started charging higher rate of interest  despite of the fact   it was agreed upon by it to give concessions, the case is reduced to a narrow compass as it is to be determined if the OP is unjustified in  charging higher rate of interest and the complainant is entitled for the relief as prayed for as is the case of the complainant.
   2. Perusal of Annexure C-2 sanction letter clearly indicates that  the OPs sanctioned education loan of Rs.70,78,304/-  in faovur of the complainant. Perusal of Annexure C-3  the arrangement letter for terms loan under education loan schemes reveals that the OP had sanctioned loan of Rs.70,78,304/- in favour of the complainant and the following concession  had been given to the complainant:-
   3.  

a) 0.50% concession in interest rate of girl students availing Education Loans.

b)) 0.50% concession for students availing of SBI Rinn Raksha. Value of the policy should be equivalent to the loan amount. In case the student is already having a Life Insurance policy for an amount equivalent to the loan amount, this concession will be extended only if the policy is assigned in favour of the Bank. (applicable under SBI Global ED-Vantage Loans & SBI Student Loan of Rs. 7.5 Lakhs for public borrowers only).

3.  From the aforesaid  concessions clause, it is clear that the OP had agreed to give 0.50%  concession on interest rate for girl student availing education loan and had further agreed to give 0.50%  for student availing SBI Rinn Raksha, provided value of policy should be equivalent to the loan amount and in case the student is already having life insurance policy an amount equivalent to loan amount and the concession will be extended only if the said policy is assigned in favour of the OP bank (applicable under SBI Global ED-Vantage Loans & SBI Student Loan of Rs. 7.5 Lakhs for public borrowers only )
4. Perusal of Annexure C-5 indicates that in the statement of account OP had sanctioned loan/limit only for Rs.70,00,000/- and on the aforesaid amount the OPs started calculating interest on the disbursal amount of Rs.6,80,000/- on 28.10.2021 and another amount of Rs.9,04,000/- on 29.11.2021 towards the fees and house rent maintenance as is the case of the complainant. It is further clear from the aforesaid statement of account that the OP had only given benefit of concession 0.50 in interest rate for complainant being girl student and not given concession  of 0.50  for student availing SBI Rinn Raksha. It is further clear from statement of account that the OP had only sanctioned limit of Rs.70,00,000/- despite of  fact that loan of Rs.70,78,304/-  was sanctioned vide sanction letter Annexure C-2 and arrangement letter Annexure C-3.  As complainant has obtained the SBI Rinn Raksha policy  for the loan amount but till date the said policy has not been provided  to the complainant, it is safe to hold that the aforesaid act of OP amounts to deficiency in service and unfair trade practice as the complainant is still at risk for the aforesaid loan of Rs.70,00,000/- since the SBI Rinn Surksha has not been provided by the OP and at the same time the complainant is not able to get concession of 0.50 interest rate on the loan amount especially when the entire case set up by the complainant in the consumer complaint as well as the evidence available on record is unrebutted by the OP. Hence, the instant consumer complaint deserves to be allowed.

4. In the light of the aforesaid discussion, the present consumer complaint succeeds, the same is hereby partly allowed and OP is directed as under :-
   1. to issue SBI Rinn Raksha Life Insurance policy equivalent to the loan amount in the name of the complainant for which the loan amount of Rs.78304/- has already been sanctioned for premium amount.
   2. to overhaul the loan account of the complainant by giving concession @0.50% on account of SBI Rinn Raksha Life Insurance Policy.
   3. to pay ₹30,000/- as compensation for    causing mental agony and harassment;
   4. to pay ₹10,000/- to the complainant as costs of litigation.

 

5. This order be complied with by the OP within a period of 45 days from the date of receipt of certified copy thereof, failing which the amount(s) mentioned at Sr.No.(iii) above shall carry penal interest @ 12% per annum (simple) from the date of expiry of said period of 45 days, till realisation, apart from compliance of direction No.(i), (ii)&(iv).
6. Pending miscellaneous application(s), if any, also stands disposed off.
7. Certified copies of this order be sent to the parties free of charge. The file be consigned.

Announced 01/08/2024			Sd/- [Pawanjit Singh] President
mp			Sd/-
			[Surjeet Kaur] Member
			Sd/-
			[Suresh Kumar Sardana] Member