BENGALURU: A consumer commission directed Canara Bank to pay compensation of Rs 1 lakh to a resident of Bengaluru for not releasing a mortgage deed even after eight years had lapsed, and failing to close the loan account opened, though property loan was not sanctioned. The bank had alleged that there was a dispute pending before court, relating to the property.
Observing that the complainant G Bhaktavatchalam, a resident of Bettappa Lane, would have made other arrangements to avail a loan to meet his financial needs, the Bangalore Urban II Additional District Consumer Disputes Redressal Commission also directed Canara Bank, Avenue Road Branch, to close the complainant’s SB account and discharge the mortgage deed dated September 25, 2012.
The Commission said the bank has acted in a lethargic and negligent manner after obtaining the property documents, without sanctioning loan. It created charge on the mortgage property though there is no liability created in its favour by the complainant.
Terming it deficiency of service which caused loss and mental agony to the complainant, the panel ordered compensation from 2012 till the filing of the complaint in 2019, along with 6 per cent interest per annum.
However, the Commission, comprising president M Shobha, members B Devaraju and V Anuradha, rejected the complainant’s prayer to direct the bank to hand over original documents, as he failed to establish that he had handed over original title deeds to the bank.
The complainant alleged that he had approached the bank for a loan of Rs 80 lakh and mortgaged a portion of his property, but the bank did not sanction the loan.