BENGALURU: Religare Finvest Ltd (RFL), a finance company located in HAL 2nd Stage in Indiranagar, had to pay heavily for violating RBI guidelines by levying foreclosure charges on an individual borrower besides slapping exorbitant interest without prior information.
Bangalore I Additional District Consumer Disputes Redressal Forum comprising of president H R Srinivas and member D Suresh ordered RFL to pay the complainant Rs 1.01 lakh and Rs 25,367 along with 12% per annum interest from the date of transferring the loan amount from its financial institution to Deutsche Bank on May 20, 2014.
The forum also ordered RFL to pay the difference of interest collected from the complainant K Sunil, resident of RT Nagar, if any. In addition to this, it has to pay Rs 20,000 towards damages and Rs 10,000 towards litigation expenses.The loan amount had been prepaid by Sunil by transferring the same to Deutsche Bank from RFL.
According the order passed recently, Sunil obtained a mortgage loan from RPL in September 2010 by mortgaging his house in RT Nagar for a sum of Rs 26.18 lakh to be repaid with 12.5% per annum flowing rate of interest in 125 Equated Monthly Installments (EMI)of Rs 3,5,575 per month.
However, in June 2011, the RFL suddenly increased the rate of interest to 13.75%. Again in December 2012, RFL increased the interest rate to 15%. Hence, Sunil moved the consumer forum.