Chennai: The state consumer disputes redressal commission, Chennai, has directed the State Bank of India to pay a compensation of Rs 1 lakh to the proprietor of an export company for failure to release a loan sanctioned in 2009.
K. Ramani of Kodambakkam had approached SBI, SME City Centre, Egmore, in 2009, for a loan of Rs 24 lakh for purchasing computerised machines for her Christie Auto Embroidery, which is engaged in embroidery and stitching buttons on export garments.
After initial scrutiny, the bank sanctioned Rs 22.50 lakh as loan. Hoping to get the amount, she deposited all the documents, including the mortgage deed of a property.
When Ramani approached the AGM of the bank to release the amount, the official refused to give a proper reply. She issued notice in December 2009.
In its reply dated December 9, 2010, the bank stated that the documents relating to the purchase of machines and employment orders were fabricated and, hence, the amount was not released.
She contended that due to the bank’s action, the firm had incurred a loss of business worth Rs 1.25 lakh per month. Denying the allegations, the bank stated that the loan amount was not released after verification of the vouchers and prospectus submitted by the petitioner.
The price of the machines was exaggerated and the tailoring institute dealing with manpower was not dealing with embroidery works.
The bench, comprising president, Justice R. Regupathi, and member A.K. Annamalai, said the bank had committed deficiency of service and directed the bank to pay a compensation of Rs 1 lakh and cost of Rs 10,000 within six weeks.
