HSBC to pay Rs 1 lakh fine to NRI

The flat was allotted in 2004 to the couple who had availed the loan facility from the ICICI Home Finance Company Limited. In 2006,the HSBC bank had offered to get the previous loan transferred and sanctioned the complainants a loan of Rs 40 lakh.

However,it failed to disburse the loan amount to the builder,which the apex consumer body held was deficiency in service and further imposed a cost of Rs 5,000 on the bank.

“Had the bank abided by its terms,the complainants would not have had to face this situation and in the bargain they were not only mentally harassed but also had to suffer heavy loss. Deficiency in service by the bank is writ large,” it said.

It noted that the bank had made an offer to take over the loan already sanctioned by the ICICI Home Finance Company Limited and lured the complainants,Sridhar Gajula and Manjeet Kaur Gajula,with the promise to sanction their entire loan requirement of Rs 40 lakh.

“After taking over their liability to the tune of Rs 27 lakh from ICICI Home Finance Company Limited and obtaining the requisite documents and security in its favour,it failed to disburse the remaining loan amount.

“The evidence clearly indicate that the bank deferred and delayed the payment of dues to the builder,M/s Omaxe Limited,despite repeated requests by the complainants. In sheer desperation and in order to save the flat,the complainants had to pay the penal interest as per the agreement with the builder from their own pocket,” the Commission said.

Earlier,the bank contended that the top-up loan was entirely a different transaction and that they were entitled not to release the amount since the complainants had failed to provide certain documents.

The Commission rejected the argument,saying when the bank had got the loan sanctioned by the ICICI Home Finance Company Limited transferred in its favour,it must have satisfied itself with all the requisite documents.

It said that asking for any further document was only an excuse not to release the sanctioned loan amount.

“From a perusal of the various communications exchanged between the complainants and the bank,it is abundantly clear that it without any valid reason has not released the dues or instalments despite its promise to do the same,” the Commission said.