SBI fined Rs 2L for not returning property papers

Panaji: The North Goa District Consumer Dispute Redressal Commission has directed the State Bank of India (SBI) to pay Rs 2 lakh as compensation to Porvorim resident Jose Rodrigues for failing to return his property documents after he repaid his loan.

The commission awarded Rs 1.75 lakh for the physical and mental agony caused and Rs 25,000 towards litigation costs.The bench, comprising president Bela Naik and members Auroliano de Oliveria and Rejitha Ranjan, observed that the bank had accepted the original property documents at the time of sanctioning the loan and retained them for nearly two decades. It held that the bank could not deny responsibility or refuse to return the documents after repayment.

The commission termed the bank’s conduct negligent, and contrary to banking norms, and found it guilty of unfair trade practice.

It ordered SBI to return the original documents within 30 days.Rodrigues, who runs a management consultancy firm, had approached the bank in 2001 for financial assistance and was sanctioned Rs 17 lakh in 2002 after submitting his papers. Though the debt recovery tribunal reduced the claim amount and a one-time settlement was reached, the bank failed to return his documents despite issuing a no-dues certificate, prompting him to approach the commission.