The District Consumer Disputes Redressal Forum in Raipur has ordered the State Bank of India (SBI) to pay ₹2.5 lakh in compensation for failing to return original home loan documents to a customer despite timely repayment of the loan.
The complainant, who had availed a home loan from SBI, repaid the entire amount within the stipulated time. However, even after repeated follow-ups, the bank failed to hand over crucial property papers, causing mental distress and financial hardship. The customer subsequently approached the consumer forum, seeking redressal.
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Forum Cites Deficiency in Service, Mental Agony to Borrower
After reviewing the evidence, including loan repayment records and correspondence between the customer and the bank, the consumer forum ruled in favour of the complainant. The forum stated that SBI had shown a “clear deficiency in service” by not returning the original documents in due time.
The forum observed that the negligence by the bank led to unnecessary stress, particularly since property ownership in India heavily relies on timely documentation. The order mandates SBI to compensate the complainant ₹2 lakh for mental harassment and ₹50,000 for legal expenses and delay-related losses.
Legal experts noted the ruling as a wake-up call for financial institutions to uphold customer service standards and document management practices. Banks are now expected to act swiftly and transparently in matters involving original property records, especially after loan closure.
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Implications for Banking Accountability
This case serves as a cautionary example for borrowers and banks alike. The delay in returning documents can not only delay the resale or transfer of property but also severely impact the borrower’s financial planning.
The forum’s order is also expected to lead to a re-evaluation of customer grievance redressal mechanisms in public sector banks, especially for retail and housing loan segments.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.