Bank in Bengaluru ordered to pay Rs 5 lakh for loss of property papers

The bank issued the closure certificate.
Image used for representational purpose.
Image used for representational purpose.

BENGALURU: The Third Additional Bangalore Urban District Consumer Disputes Redressal Commission directed the State Bank of India (formerly State Bank of Hyderabad), Rajajinagar, to pay Rs 5.30 lakh to the proprietor of a firm for the loss of property documents pledged with the bank to obtain a loan. 

Allowing the complaint filed by the proprietor of Siri Marketing, the commission directed the bank to pay Rs 5 lakh for the loss that he is going to incur on the market price of the property, inconvenience and harassment caused, and Rs 20,000 for mental agony and Rs 10,000 for litigation expenses.

“The bank shall give an advertisement at its cost in two vernacular daily, stating the original sale deed hypothecation agreement, memorandum of deposit of title deed, lease-sale deed, and original sale deed have been lost while it was in the custody of the bank and the complainant can obtain a certified copy of those documents from the authorities concerned. In case the documents are traced, the bank shall hand it over to the complainant,” said the commission comprising president K Shivarama and its members.

The State Bank of Hyderabad had sanctioned the loan to Siri Marketing, represented by its proprietor Dr Siddagangaiah, who had deposited the title deeds. He died in October 2012. His son DS Paramashivaiah closed the entire loan in March 2019. 

The bank issued the closure certificate. But as the documents were not handed back, Paramashivaiah filed a complaint with the ombudsman. He later moved the commission.

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