Hyderabad: Fullerton India asked to pay Rs. 1.10L compensation for deficiency in service

Hyderabad: Hyderabad Consumer Disputes Redressal Forum has directed Fullerton India Home Finance to pay a compensation of Rs. 1.10 lakh to a customer for deficiency in service.

Complainant B.Satish, a resident of Balanagar of Medchal Malkajgiri District had approached Fullerton India Home Finance for a loan of Rs.20 Lakh to clear private debts. He submitted an application in March 2018.

Fullerton India Home Finance, however, informed him that only Rs.12.5 Lakh was sanctioned. Fullerton India Home Finance representative visited the residence of the complainant for property verification and obtained blank cheques from him for the purpose of processing the loan from which 3,000 was deducted.

Though the complainant executed a loan agreement, the loan amount was not released by the finance company.

“I was informed that a cheque for the loan amount was already prepared and it would be issued shortly. But, even before the loan amount was released, the finance company presented the first EMI cheque for Rs.16, 647 in May 2018,” said B Satish.

The complainant approached the finance company and questioned as to why the EMI cheque was presented even before the loan amount was not released.

“I questioned the finance company in this regard. But before answering this they asked to submit the original documents and promised that the loan amount would be released. I submitted the document in June 2018. A few days later they informed me that they were presenting the second EMI cheque and asked me to make available sufficient funds in his account for which I did not agree,” said B Satish.

There was an altercation between the complainant and the finance company. In June 2018, the opposite party informed the complainant that they canceled the loan. No reasons were given for the cancellation of the loan.

The finance company said that the complainant did not provide the original link document of the property that’s why they canceled the loan.

“We sanctioned the loan of Rs.12.5 Lakh subject to the condition of depositing original title deeds. The complainant deposited only the original document but failed to deposit the original link document. He promised to submit the same later, but did not produce, in spite of several reminders made by us,” said Fullerton India Home Finance representative.

They contended that because the loan was sanctioned that’s why the first EMI was generated and the complainant was asked to make available sufficient funds in his account for encashing the cheques.

The complainant, however, did not make available sufficient funds in his account. In spite of advance information given to him, he paid the first Installment. But the complainant did not deposit the original link document.

“The report of property verification of the complainant was also found in the negative. The opposite party, therefore canceled the loan under Article 18 of the Loan Agreement,” said the finance company.

They also denied that they obtained the blank cheques from the complainant, apart from receiving Rs.3,000.

The Forum said going through the written version, evidence affidavit and arguments and the documents filed, they observed that the finance company has the deficiency of service as they did not release the loan amount but released the first EMI from the complainant.

“The fact remains that his track record and CIBIL gets affected in view of the return of the cheque and cancellation of the loan. The complainant having suffered hardship on account of the cancellation of the loan and cheque return amount and he is therefore entitled to compensation,” said the Forum.

The Forum ordered to pay Rs.19, 647 towards the refund, Rs.1, 00,000 as compensation for deficiency in service. And Pay Rs.10, 000 towards the cost of litigation, it said.