DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION: BHADRAK
Dated the 03rd day of February, 2021
C.D Case No. 41 of 2019
1. Shri Basanta Kumar Mallick, Presiding Member
2. Afsara Begum, Member
Sri Gobinda Ch. Malik
S/o Late Baisnab Malik
At: Sanandpur,
Po: Padmapur,
Ps: Basudevpur,
Dist: Bhadark ……………………. Complainant
(Versus)
The Branch Manager, Andhra Bank, Sahada
At/Po: Sahada,
Ps/Dist: Bhadrak ……………………..Opp. Parties
Counsel For Complainant: In Person
Counsel For the OP: In Person
Date of hearing: 15.10.2019
Date of order: 03.02.2021
BASANTA KUMAR MALLICK, PRESIDING MEMBER
This dispute arises out of a complaint filed by the complainant alleging deficiency of service and unfair trade practice against the O.Ps.
The facts of the case as narrated in the complaint are to the effect that the complainant applied to OP bank for sanction of a gold loan of Rs 45,000/- to meet the expenses for cultivation. According to the request of the complainant, the OP bank assessed the value of the gold and sanctioned a sum of Rs 45,000/- under agriculture loan which was repayable within the crop season or within a year from the date of sanction. At the time of sanction OP bank assured to charge 4% P.A interest on the loan amount and advised the complainant to pay the interest accrued during the year to keep the account operative. In the mean time within the first year the complainant has deposited on 21.05.2018 of Rs 2,300/- to the credit of the loan account. When the complainant approached the OP bank for closer of the account on payment of principal and interest @ 4% P.A, the OP bank charged higher rate on interest @ 10.40% P.A together with 2% over due interest. Being aggrieved with the activities of OP bank, the complainant filed this case praying for justice.
OP bank objected the claim of the complainant and contested the case. In submitting written version the OP bank has raised that an amount of Rs 45,000/- was sanctioned in favour of the complainant and was credited to his personal account on 26.05.2017 stipulating the condition to charge interest @ 10.40% P.A and the said account will remain operative up to 25.05.2017 within which the complainant is liable to pay entire interest to be accrued during this period to keep the account alive and operative and also had to apply for renewal of said gold loan account. But the complainant paid Rs 2,300/- on 21.05.2018 as against the total interest accrued of Rs 3,632/- as a result of which the loan account became over due and inoperative on 27.05.2018. It is also a fact that there was provision for 5% interest subvention to prompt paying borrowers if paid during the same crop year or within one year whichever is earlier as per R.B.I circular No. RBI/2019-20/48 FIDD.CO.FSD.BC.No. 10/05.02.001/2019-20 dt. 26.08.2019. But in the present case the complainant has not paid the entire interest demand nor has renewed the gold loan account for which he was deprived of getting such benefit as per afore mentioned circular. Hence the complainant is liable to pay the total amount outstanding in the loan account as on the date of filing of this case and future interest also together with overdue charges.
Heard both the parties and perused materials on record. The statement of accounts submitted by both the parties revels that the complainant has availed loan of Rs 45,000/- on 26.05.2017 which was operative up to 25.05.2018 as the loan so granted against pledge of gold for agriculture purpose is short term in nature. The complainant is required to pay the actual interest accrued during the year to make the account eligible for renewal. But in the present case the total interest accrued for the year is Rs 3,682/- as against which the complainant ahs paid Rs 2,300/- which is not sufficient to augment the interest dues. As a result of which the said loan account became out of order/overdue on 26.05.2018. Secondly the OP bank has raised that it has been charging interest @ 10.40% P.A on the loan amount and in the event of default more 2% has been charged as overdue interest which is not faire and contravenes the RBI circular on short term agriculture loan. According seasonal agricultural operation circular issued by RBI a bank cannot charge interest more than 9% on any short term agriculture loan. More over the borrower also entitled to 2% interest subversion basing on which the interest will be calculated @ 7% P.A. The complainant is not entitled to 3% additional interest subversion as the account has become overdue and the complainant is not coming under the category of prompt paying borrower. Hence finally the interest will be calculated @ 7% where as the bank has calculated charging interest @ 12.4% P.A which is illegal and unfair.
In the above premises the OP bank has to calculate interest @ 7% P.A from the date of advance and the complainant should be allowed to pay the principal amount of the Rs 45,000/- together with interest @ 7% P.A so as to enable him to get his gold released. Hence it is ordered;
ORDER
In the result, the complaint be and the same is allowed in part against the OP bank. The OP bank is directed to release the pledged gold on payment of total principal amount and interest @ 7% P.A within a period of 30 days.
This order is pronounced in the open Forum on this day of 3rd February, 2021 under my hand and seal of the Forum.
