Bangalore Consumer Commission Orders ICICI Bank To Pay For Failing To Return Borrower’s Original Documents

Bangalore Consumer Commission Orders ICICI Bank To Pay For Failing To Return Borrower’s Original Documents

The III Additional Bangalore Urban District Consumer Disputes Redressal Commission, with Shivarama K as President along with Chandrashekar S Noola and Rekha Sayannavar as members, found ICICI bank at fault for not returning the original documents to a complainant within a month after disbursing a loan.

The complainant and his wife, while residing in the UK, took a home loan from ICICI Bank through Andromeda Sales and Distribution Pvt. Ltd. They granted a general power of attorney (GPA) to the complainant’s mother, R. Ratnamma, for handling property matters on their behalf. The bank sanctioned a loan of ₹1,60,00,000, and disbursed ₹1,40,00,000 at an annual interest of 6.8 per cent, with the property registered on October 8, 2021.

Trouble began when ICICI Bank failed to provide a detailed list of the original documents submitted during the property’s sale registration, including the GPA. Despite repeated requests, the bank delayed the list until a month after the loan was disbursed. The complainant’s plans to sell the property in July 2022 were hindered due to the unavailability of these documents, further complicated by the complainant’s NRI status and his mother’s health issues.

The situation worsened when IDBI Bank, the property buyer, required the physical presence of the complainant and his wife in India for the paperwork. ICICI Bank’s provided document list was incorrect and incomplete, missing the original GPA, adding to the complainant’s troubles. This led the complainant to seek redress from the District Commission.

ICICI Bank defended itself by stating that the complainant knew the GPA was an internal document and that the requirement for physical presence was from IDBI Bank and the buyer. The bank denied any delay in providing documents and accused the complainant of hiding facts, including the closure of the loan account and the refund of excess amounts.

The District Commission observed that ICICI Bank did not present any proof of returning the documents on time as required. The bank’s failure to provide a full list of documents when asked caused inconvenience and delayed the property sale. As a result, the commission declared ICICI Bank responsible for service deficiency.

The commission ordered ICICI Bank to compensate the complainant with ₹50,000 for the service deficiency, inconvenience, and mental distress caused. Additionally, the bank was instructed to cover litigation costs amounting to ₹10,000.