Hyderabad: The State Bank of India was directed to pay Rs 3 lakh to a defaulter for misplacing his original property documents given as collateral for a home loan.
The Ranga Reddy District Consumer Disputes Redressal Commission additionally ordered SBI to pay Rs 20,000 as lawsuit expenses, holding the bank accountable for negligence and deficiency in service.
The case came to light when the borrower, B Venkatesham, had repaid the entire home loan and was seeking the property documents.
The Commission’s order read that Venkatesham had availed a Rs 5 lakh home loan from the Aditbala branch of SBI. To further secure the loan, he deposited the original sale deed and other documents associated with the 194-square-yard plot owned by his relative M Anjaiah in Bairamalguda.
Upon clearing the loan and obtaining a “No Dues Certificate” from the bank in March, Venkatesham requested the return of the original documents.
However, the bank did not return the original documents and instead informed the defaulter that the papers had been misplaced. SBI then handed over authorised copies.
Finding the response dissatisfactory, Venkatesham approached the Ranga Reddy District Consumer Commission, accusing the bank of negligence. At the hearing, SBI told the Commission that it had filed a police complaint after the documents went missing and had given certified copies in their place.
The State Bank of India contended that the property belonged to Anjaiah, who was not the complainant in the case, and thus Venkatesham cannot be entitled to compensation.
Dismissing the argument, the Commission noted that the home loan account was under Venkatesham’s name, stating that he possessed full legal right to request the return of the originals submitted as collateral.
The Commission held SBI responsible for its failure to maintain the documents’ safety and ordered the bank to pay Rs 3 lakh as compensation as well as Rs 20,000 for the litigation costs.
