Bangalore District Commission Holds ICICI Bank Liable For Failure To Return Original Documents Within One Month Of Loan Disbursement

Brief Facts:

The Complainant, along with his wife, secured a home loan from ICICI Bank facilitated by Andromeda Sales and Distribution Private Limited. Notably, a general power of attorney (GPA) was executed by the Complainant and his wife in favour of the Complainant's mother, Smt. R. Ratnamma, granting her authority over property transactions on their behalf while they resided in the UK. Subsequently, ICICI Bank offered a substantial home loan of Rs. 1,60,00,000/- to the Complainant. A home loan agreement was signed by the Complainant, his wife, and his mother, alongside the execution of GPA documents. The loan amount of Rs. 1,40,00,000/- was disbursed with 6.8% interest per annum, and property registration occurred on 08/10/2021.

However, issues arose when, during the property sale registration, ICICI Bank submitted the GPA along with other original documents without providing a comprehensive list. Despite requests from the Complainant, ICICI Bank postponed furnishing the list until one-month post-loan disbursement. As circumstances changed, the Complainant opted to sell the property, leading to a sale agreement in July 2022. However, despite persistent efforts, the Complainant failed to obtain the necessary documents from ICICI Bank, complicating the transaction, especially given the complainant's status as an NRI residing in the UK and his mother's health concerns.

The situation escalated when the property purchaser, IDBI Bank, demanded the Complainant and his wife's physical presence for paperwork in India. ICICI Bank provided an incorrect and incomplete list of documents, with the original GPA document missing, further exacerbating the Complainant's distress. Feeling aggrieved, the Complainant approached Additional District Consumer Disputes Redressal Commission-III, Bengaluru Urban, Karnataka (“District Commission”).

ICICI Bank argued that the Complainant was aware that the GPA would be treated as an internal document, and the demand for physical presence during the transaction originated from IDBI Bank and the property purchaser. Furthermore, ICICI Bank refuted claims of delayed document provision, citing correspondence indicating timely responses and alleging concealment of facts by the Complainant, including a loan account closure and refund of excess amounts.

Observations by the District Commission:

The District Commission noted that ICICI failed to produce evidence supporting the timely return of documents, as per their obligations within one month of loan disbursement. This failure to provide a complete document list upon request resulted in inconvenience and delayed the property sale. Therefore, it held ICICI Bank liable for deficiency in services.

Consequently, the District Commission directed ICICI Bank to pay Rs. 50,000/- to the complainant for the deficiency in service, inconvenience, and mental agony endured. Additionally, ICICI bank was directed to pay Rs. 10,000/- for the litigation costs incurred by the Complainant.

Case Title: Naveen Kumar Javarasetty vs ICICI Bank Limited

Case Number: Consumer Complaint No. 98/2023

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