Nation Other News 07 Mar 2019 Nellore: Bank asked ...

Nellore: Bank asked to pay 35,000 for misplacing documents

DECCAN CHRONICLE.
Published Mar 7, 2019, 7:22 am IST
Updated Mar 7, 2019, 7:23 am IST
Subsequently, he paid the loan and the account was closed in 2013.
The bank added that the new owners of the site secured a loan from the IDBI by pledging the property. (Photo: ANI)
 The bank added that the new owners of the site secured a loan from the IDBI by pledging the property. (Photo: ANI)

Nellore: In another case, the  Consumer Disputes Redressal Forum, Nellore pulled up the State Bank of India, Naidupeta agriculture development branch for not returning documents pledged with the bank as security towards a loan even after clearing all dues.

The complainant Madupuru Prasad of Babu Agraharam in Srikala-hasti submitted to the forum that he had availed a personal loan of Rs 8 lakhs in 2006 from the SBI by mortgaging 533.330 square yards of vacant house site in favour of the bank.  

 

Subsequently, he paid the loan and the account was closed in 2013. He also closed the loan accounts of his wife M. Harathi and his father-in-law G. Balarama Naidu at the instance of the bank by 2016 but the bank not return the document in spite of closing the loans.

He knocked at the doors of the forum when the bank failed to respond to his representation in October 2017 and legal notice in December 2017.    To the surprise of Prasad and the forum, the bank stated that they had made a search for the documents but could not find them.  

The bank attempted to downplay the issue on the plea that the title holder of the documents, M. Ramanamma did some transactions in the registrar’s office at Sri-kalahasthi without original documents and produced the encumbrance certificates as proof.

The bank added that the new owners of the site secured a loan from the IDBI by pledging the property. Not convinced with the submission of the bank, the forum said it was the duty of the bank to return the original documents once the obligation was discharged by the complainant.

It directed the bank to apply for a certified copy of the original document and issue a certificate on their letter head stating that the original property deed was lost during their custody and pass this to the title holder M. Ramanamma, (co-surety to the loan).  The Forum also directed to pay damages of Rs 30,000 and costs of Rs 5,000 to the complainant, Prasad.

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