This complaint coming up before us for final hearing on                      07-04-11 in the presence of Sri V.L.Krishnarjuna Rao, advocate for complainant and of Sri P.Prabhakar Rao, advocate for OP1, OP2 remained exparte, upon perusing the material on record, hearing both sides and having stood over till this day for consideration, this Forum made the following: 

O R D E R

Per Sri M.V.L.Radha Krishna Murthy, Member:

                This complaint is filed under section 12 of the Consumer Protection Act, 1986 by the complainant praying to direct the opposite parties to pay a sum of Rs.1,63,673/- towards excess pre-collection charges amount with interest @2% from the date of claim till realization and to direct opposite parties to a sum of Rs.1,00,000/- towards mental agony including legal expenses.

The case of complainant in brief is as follows:  

                   The complainant obtained a housing loan of Rs.28,50,000/- on 31-12-09 and discharged the entire loan amount by 29-12-09.  The opposite party collected heavy prepaid charges of Rs.2,20,673/- as per statement of account dt.31-12-09 from the complainant more than 9% against RBI rules and regulations and against Banking Regulation Act as well as Interest Act.  The Government banks like SBI and private banks like ICICI and HDFC are only collecting 2% as per usage and custom as per prevailing market rates.  If the pre-payment charge is calculated at 2% as per the prevailing market rules and regulations and under banking principles, it amounts to only Rs.57,000/-.  Thus there is a difference of Rs.1,63,673/- collected by 1^st opposite party towards prepayment collection charge.  Hence, the complaint for refund of excess prepayment charge collected by 1^st opposite party from the complainant.

The 1^st opposite party filed its version, which is in brief as follows:

                Most of the averments mentioned in the complaint are false and incorrect and the complaint is liable to be dismissed. It is true that the complainant availed a loan for the construction of house and subsequently on installments he repaid the amount.  As per the terms and conditions of the sanctioned letter under serial No.23 it was stipulated that “prepayment exceeding 10% of outstanding balance in a financial year shall attract prepayment charges of 0.5% p.a. for the remaining term of loan for the entire amount paid.”  Agreeing to the said terms and conditions, the complainant singed on the sanctioned letter and according to the sanctioned letter, 1^st opposite party collected the prepayment charges. This Forum has no jurisdiction to entertain the complaint because the complainant is demanding for repayment of amount already paid.  There is no deficiency of service on the part of opposite party. Hence the complaint may be dismissed with costs.

                In support of their respective contentions, the complainant and 1^st opposite party filed their respective affidavits.  The 2^nd opposite party remained exparte. 

                On behalf of complainant Ex.A1 to A8 are marked.  On behalf of 1^st opposite party Ex.B1 to B3 are marked.      

Now the points for consideration are

1. Whether there is any deficiency of service on the part of opposite parties?
2. To what relief the complainant is entitled to?

POINT No.1

                The case of the complainant is that he obtained housing loan from 1^st opposite party with the consent of 2^nd opposite party to a tune of Rs.28,50,000/- and discharged the same by 29-12-09, that the 1^st opposite party has collected Rs.2,20,673/- towards prepayment collection charge at more than 9% against the RBI rules and regulations even though, the SBI and ICICI and HDFC banks are only collecting 2% towards payment charges, that if it is calculated at 2%, it amounts to Rs.57,000/- only and that the opposite party has collected excess of Rs.1,63,673/-.

                The case of 1^st opposite party is that they have collected prepayment charge as per the terms and conditions mentioned in the sanction letter and that the complainant has agreed for the said pre-closure condition at the time of sanction of loan and duly signed.  Therefore, they have collected the pre-closure charges as per condition 23 of sanction letter.

                The copy of loan sanction letter is marked as Ex.B2.  The pre-closure/prepayment charge is stipulated under condition 23 of Ex.B2 reads as follows:

                “Pre-closure / Prepayment exceeding 10% of outstanding balance in a financial year shall attract prepayment charges of 0.5% per annum for the remaining term of loan for the entire amount paid”    

                It was contended by 1^st opposite party that as per the above said condition, they have collected prepayment charge.  The contention of complainant is that the 1^st opposite party has collected more than 9% towards prepayment charge against the rules and regulations of RBI and that the Government Bank SBI and the private banks like ICICI and HDFC are only collecting 2% prepayment charge. The said regulations of RBI are not filed by the complainant before this Forum in support of his contention.  At the time of sanction of loan, the complainant agreed for the condition 23 of sanction letter and duly signed the same.  The 1^st opposite party has collected the prepayment charge as per the stipulated agreement since it was agreed and signed by the complainant.  Contrary to the said stipulation, the complainant has not filed any document in support of his contention.  Therefore, in the absence of any rules and regulations contrary to the stipulated condition No.23 in Ex.B2, it can be safely concluded that there is no deficiency of service on the part of opposite parties in collecting prepayment charges from the complainant.   Accordingly we find no deficiency of service on the part of opposite parties.  Accordingly, this issue is answered.

                In the result, the complaint is dismissed without costs.

Typed to my dictation by the Junior Steno, corrected by us and pronounced in the open Forum, this the 19^th day of April, 2011.

                  Sd/-XXX                      Sd/-XXX                            Sd/-XXX

          MEMBER                               MEMBER                            PRESIDENT

APPENDIX OF EVIDENCE

                                        DOCUMENTS MARKED

For Complainant:

For Opposite Parties:                                                                         

                                                                         PRESIDENT