Consumer forum penalises Dena Bank for failing to return loan documents

The Central Mumbai district consumer redressal forum has penalised Dena Bank after the bank failed to hand over the consumer's agreement documents even after the complainant repaid the loan amount. The forum directed the bank to hand over the documents and asked it to pay Rs 10,000 as compensation for the mental agony the complainant went through. The forum also asked the bank to pay an additional Rs 2,000 towards litigation cost.

The case dates back to 2007 when Pradeep Dadhich, a resident of Surat, approached the Dadar branch of Dena Bank seeking a loan of Rs 6,75,000 to buy a flat in Bhayender. The complainant deposited the sale agreement documents with the bank and was granted the loan amount.

Pradeep Dadhich paid the developer the amount and simultaneously started paying off the bank instalments. However, after paying a few instalments, the complainant decided to sell the flat out of personal compulsion.

"After selling the flat, the complainant asked the person to whom he had sold it to pay the remaining amount of the loan at one go, which the purchaser did," according to the forum's order.

After this the complainant requested the bank to hand over his agreement documents. The bank however failed to do so.

Aggrieved by this, the complainant approached the forum and filed a complaint.

The forum after going through the complaint asked the bank to file its reply. The bank however failed to do so.

The forum while passing orders maintained that after the complainant had repaid the entire loan amount, it was the bank's duty to hand over the documents, but it did not do so. This showed negligence on the part of the bank. The forum later passed orders penalising the bank.